r7 /^--^ M^ d^^C^^ 





'^.^^^^ ^^y^^£ 






*^. '^^.'t T-'* ^N *"!?•*».'%<.•.■ >> 

^■v ■ . ... ^_ 



A>».v>^ ^^^- ^ 



^ "x 



^ 







3 fis* -%%vvv^ ^;^^ N^^ 



V, > 



. ^4^,*- 



t t 






^ u\ ' , %' A . ^% 



a 



TREATISE 



ON 



CIVIL POLITY 



AND 



POLITICAL ECONOMY: 

WITH 

AN APPENDIX, 

CONTAINING 

BRIEF ACCOUNT OF THE POWERS, DUTIES, 
AND SALARIES, OF NATIONAL, STATE, 
COUNTY, AND TOWN OFFICERS. 

FOR THE USE OF SCHOOLS. 



BY MAirCiys'^ILLSON. 



f IsSa^OK^ 



PUBLISHED BY J. ORYILLE TAYLOR, AT THE 

"asierican common school union," 

128 Fulton- street. 

1838. 



3 



\ 



n\ 



Entered according to act of Congress^ in the year 1S3S, by 
J. Orville Taylor, in the Clerk's Office of the District Court 
of the United States for the Southern District of New ■• York. 



,3 rr 







PRINTED BY SPINNING & HODGES, 
162 Nassau-street, New -York. 



rREFACE. 



The object of the writer in compiling the fol- 
lowing work, has been to prepare a book that 
may be read with profit by all, but principally to 
afford a useful and long-needed text-book for high 
schools and academies. The subjects here treated 
have too long been considered beyond the pale of 
a common education, and as belonging exclusively 
to the pursuits of literary and professional men; 
and it is but lately that they have been introduced 
into a few of our colleges and higher seminaries 
of learning. Why subjects of such paramount 
importance to American citizens — subjects which 
explain the theory, principles, and practical oper- 
ation of our republican institutions — and the 
nature, origin, and principles of national wealth, 
should so long be neglected by the great mass of 
those who are so obviously interested in an inti- 
mate acquaintance with them, can be explained 
only by the supposition that they have reflected 
too little upon the objects of these studies, and con- 



4 PREFACE. 

sequently have remained unaware of their import- 
ance. Otherwise, their real utility would long 
since have placed them among the first studies to 
be pursued in a popular course of education. 

The most important knowledge for an individ- 
ual to acquire, is such as will best enable him 
honorably and usefully to fill the station Avhich 
by birth or fortune he is destined to occupy. — 
Having adopted a new system of government, and 
assumed a new station in the political world, if 
our republican institutions are worthy of being 
preserved by us, and transmitted unimpaired to 
posterity, we should, as a people, strive to acquire 
that know^ledge which best befits our station, that 
we may honorably and faithfully fulfil those du- 
ties which it devolves upon us. As our govern- 
ment depends directly upon the people for its sup- 
port and preservation, it is idle to suppose that they 
will feel for it a very ardent attachment, or prove 
very able supporters of a system of whose princi- 
ples they are ignorant ; but while their opinions, 
although correct, are founded on ignorance, they 
will ever be liable to be led astray by the wild 
theories and idle speculations so prevalent in a 
country w^here public opinion is the ultimate tri- 
bunal of appeal There is scarcely a theory, how- 
ever extravagant or absurd, that will not find sup- 



PREFACE. 5 

porters either among the ignorant or the selfish 
and designing; and if public opinion be unen- 
lightened, there is no antidote beyond it that can 
save us from the evils of any destructive, disorgan- 
izing, popular delusion. 

Believing that our form of government is the 
best ever adopted for an enlightened people, and 
that if they understand its principles they will 
value it too highly to desire a change to any of 
the systems which have preceded it, or to any 
hitherto untried experiment, there seems to be 
nothing wanting to insure its perpetuity but a 
more general and intimate knowledge of its prin- 
ciples and practical operation. The importance 
and necessity of such knowledge is not confined 
to any one class or portion of community, but ex- 
tends to every American citizen, w^hatever his 
calling or profession. To afford such instruction, 
that portion of the following vv^ork which treats 
of Political Knowledge and Constitutional Law, 
has been written. It is designed to give a concise 
but comprehensive exposition of the elementary 
principles of those sciences ; and it is believed to 
be written in so plain and familiar a manner, that 
any one, who will, can understand it. 

Several commentaries and expositions of the 
Constitution have already appeared, but most of 

1* 



PREFACE. 

them have been designed for the reading of the 
higher classes in colleges, or for professional men, 
and are not well adapted to the use of schools. 
Those writings to which the author is principally 
indebted for the materials of that portion of the 
following work which treats of the Constitution, 
are the Commentaries of Chancellor Kent and 
Chief-Justice Story, Gordon's Digest of the Laws 
of the United States, Bayard's and Duer's Expo- 
sitions of the Constitution, and Mansfield's Politi- 
cal Grammar. 

The author claims little originality^ for this por- 
tion of his work, other than for the manner in 
which the subject is illustrated. His design has 
been to compile a work that will be useful, and 
in following out his plan, he has not hesitated to 
avail himself of the assistance afforded by the 
writincrs of others. 

The study of Political Econom^y is beginning 
to receive that attention from the friends of popu- 
lar education which its importance demands. It 
is now introduced into most of our colleges and 
schools of a higher order, but as yet most of the 
text-books used are too voluminous to be gener- 
ally adopted in high schools and academies. To 
supply the want of such a work, the " Elements 
OF Political Economy" have been written, in 



PREPACE. 7 

which the principles of that science are familiarly 
explained. In the compilation of this portion of 
his work, the author has principally consulted the 
writings of Adam Smith, Mr. Say, and the late 
excellent work of President Wayland. The first 
twenty-three pages, ending with "Protective Du- 
ties," are little more than an abridgment of the 
first one hundred and forty pages of Wayland. It 
has been the aim of the writer to avoid all repe- 
tition, and yet to illustrate his subject in as con- 
cise and simple a manner as possible. The re- 
maining portion of the work, both in manner and 
matter, has more claim to originality; but it is 
believed that the principles attempted to be estab- 
lished and illustrated, are the same with those 
advanced by the principal political economists of 
the present day. Most of those principles, which 
are now considered erroneous, but which present 
some claim to our attention on account of their 
adoption by the earlier writers on Political Econ- 
omy, have been adverted to chiefly in the notes 
which accompany this work. In so limited a 
work as the present, which professes simply to 
methodize and illustrate obvious and first princi- 
ples, it is thought the writer's time would be mis- 
spent in combating erroneous theories, which 
will of themselves sink into oblivion as the first 



8 PREFACE. 

principles of Political Economy become more 
generally and more perfectly understood. In re- 
lation to the many erroneous theories advanced 
by uninformed political economists, I cannot for- 
bear to quote the words of Mr. Say. " With re- 
spect to the wild or antiquated theories so often 
produced or reproduced by authors who possess 
neither sufficiently extensive nor well-digested in- 
formation to entitle them to form a sound judg- 
ment, the most effectual method of refuting them 
is to display the true doctrines of the science with 
still greater clearness, and to leave to time the 
care of disseminating them. We otherwise should 
be involved in interminable controversies, afford- 
ing no instruction to the enlightened part of soci- 
ety, and inducing the uninformed to believe that 
nothing is susceptible of proof, inasmuch as everjr 
thing is made the subject of argument and dispu- 
tation." 

In the hope that this work may be found use- 
ful to the public — that it may serve to increase 
the intelligence and excite the patriotism of his 
fellow-citizens, and prove an efficient auxiliary 
in the cause of common education, the author re- 
spectfully submits it to the judgment of the public. 

Pou^hkeepsie, Noi^ember 10, 1837. 



CONTENTS 



AND 



PLAN OF THE WORK 



BOOK FIRST. 
CIVIL POLITY, 

CONTAINING ELEMENTS OF POLITICAL KNOWLEDGE AND 
CONSTITUTIONAL LAW. 

PART FIRST. 

Elements of Political Knowledge, 

Natural Liberty 25 

Civil Liberty 26 

CivilSociety 27 

Law 28 

Sovereignty 30 

Government 32 

Despotism 32 

Aristocracy 33 

Democracy » 35 



10 CONTENTS. 

Limited Monarchy 87 

United States Government 39 

Constitution 42 

Statute Law 46 

Common Law 47 

Corporations 47 

Charter 48 

Parties 48 

Factions 49 



PART SECOND. 

Constitutional Law. 

Origin of the Constitution of the United States 51 

Preamble 54 

Article I. — Of the Legislatiire. 

Sec. I. — Legislative Power 55 

Congress 55 

Of the Organization of the Government ... 55 

Of the constituent parts of the Legislature . . 55 

II. — Electors of Representatives 56 

Gluaiifications of Representatives 57 

Ratio of Representation 57 

Vacancies in the Representation from a State 60 

Mode of electing Representatives 59 

Officers of the House of Representatives ... 60 

Power and Mode of Impeachment 60 



CONTENTS. 11 

III. — Composition of the Senate 61 

Gtualifications for Senators 63 

President and other Officers of the Senate 64 

Power to try Impeachments 64 

Judgment upon Impeachments 65 

IV. — Elections for Senators and Representatives 65 

Assembling of Congress 66 

V. — The keeping of a Journal by each House . . 66 

Expunging of the Journal 67 

Adjournments of either House 67 

VI. — Members privileged from Arrest 68 

Treason, Felony, and Breach of the Peace 68 

VII. — Bills for raising Revenue 69 

Mode ojf passing Laws 70 

Executive Veto 71 

Of the Powers of Congress. 

VIII. — To impose Taxes, Duties, Imposts, and Ex- 
cises * 73 

To borrow Money 75 

To regulate Commerce 76 

To establish the Mode of Naturalization. . 77 

Protective Duties 76 

Naturalization 77 

Bankruptcy 78 

To coin Money, &c 79 

To establish Post-offices and Post-roads . . 80 

Internal Improvements 80 

Patent and Copy rights ; . 81 

To constitute Judicial Tribunals 82 

To punish Piracy 82 

Piracies — High Seas 83 



12 CONTENTS. 

To declare War, support Armies, Ac. ... 83 

Letters of Marque and Reprisal .... 83 

Navy — Standing Armies 84 

Powers of Congress over Military Affairs 85 
Powers of the President as Commander- 
in-chief 86 

Legislation over ceded Places 86 

The question of a National Bank 88 

Of Restrictions upon the Poiolrs of Congress. 

IX. — Importation of Slaves ^ 

Writ of Habeas Corpus—Bills of Attainder 90 

Ex post facto Laws 91 

Capitation Taxes 92 

Duties on Exports 92 

Commercial Regulations 93 

The Public Moneys 93 

Titles of Nobility 94 

Of Restrictions upon the Powers of the States, 

X.— Bills of Credit 94 

Obligation of Contracts 95 

Tonnage Duties dQ 



Article IL — Of the Exectitive. 

Sec. I. — Executive 97 

Electors of President and Vice-President. 98 

Manner of Election ......*.. 99 



CONTENTS. 13 

Clualifications for President 101 

II. — His Powers and Duties 104 

Public Ministers — Ambassadors — Con- 
suls 107 

III.— President's Messages 108 



Article III. — Of the Judiciary. 

Sec. I. — Organization of the Courts of the United 

States 110 

II. — Extent of Judicial Power Ill 

A Case — Equity Ill 

Admiralty and Maritime Jurisdiction ... 112 

Original and Appellate Jurisdiction 114 

Trials by Jury 114 

III. — Treason — Conviction and Punishment of 116 



Article IY. — Miscellaneous, 

Sec I. — Credit given to domestic Judgments — to 

foreign Judgments 117 

II. — Privileges of Citizens in different States. 118 
Fugitive Slaves — Delivery of Criminals 118 

III. — Admission of new^ States 119 

Territorial Regulations 120 

IV.—- Protection of the States 120 



Article V. — Of ATnendments. 

Amendments, how made 121 

Limitations to the powei of making Amendments. 121 
2 



^ 



14 CONTENTS. 

Article YI. 

Debts contracted before the adoption of the Constitu- 
tion 122 

Laws of the Land 123 

Oath required of Public Officers— Religious Test. . 124 

Article VIL 

Of the Ratification of the Constitution 125 

Amendments 127 



BOOK SECOND. 

ELEMENTS OF POLITICAL ECONOMY. 



Introduction, 

Political Economy 135 

Wealth 135 

Value intrinsic' 136 

Value exchangeable 137 

Division of the Subject 141 



CONTENTS. 15 

PART FIRST. 

Of the Production of Wealth. 

Section I. — Of Cajpital, 

The Nature of Capital 144 

The Forms and Changes of Capital 145 

Productive and Unproductive Capital 147 

Fixed and Circulating Capital 148 

Section II. — Of Industry. 

I. The Object of Industry 150 

Changes effected b)^ Industr}^ 150 

The different Forms of Industry 151 

The Products of the different Forms of Industry. . . 153 

II. Of the different Modes by ^'hich the Productive- 
ness of Human Industry may be increased ; and, 
first, by the Use of Natural Agents ..... .'-i^'iifl s?^156 

Natural Agents-r-animate and inanimate 157 

Their Uses and Importance 157 

III. Of the Manner in which Productiveness may . . 
be increased by Division of L?bor . . 158 

Division of Labor among the different Departments 
of Industry 158 

IV. Limitations to the Division of Labor 162 

From the Nature of the Process 16*2 

Amount of Capital 163 

Extent of the Demand 164 

Of the natural National Divisions of Labor 165 



\ 



16 CONTENTS. 

V. Effects of the increased Productiveness of Hu- 1 
man Industry 166 

Labor-saving Machinery 166 

Effect upon both Consumers and Producers 167 

Section III. — Of the PrinciiJles which govern the Appli- 
cation of Labor to Capital. 

Labor and Capital united 171 

I. Freedom of Labor and Capital necessary to Pro- 
duction 171 

Effects of an Insecurity of Property upon Industry. 172 
Monopolies 173 

II. The greater the ratio of Capital to Labor, the 
greater will be the Wages of Labor, and the great- 
er will be the stimulus to Industry 175 

Advantages of accumulations of Capital 176 

III. The Productiveness'of Industry and Capital will 
be increased in proportion to the Intellectual Im- 
provement of a People 178 

IV. Of Protective Duties 179 

V. Of Bounties 192 



PART SECOND. 

Of the Distribution of Wealth, 

The Principles which regulate the Division of Val- 
ue among the Producers 195 



CONTENTS. '^17 

The Wages of different kinds of Labor 197 

Of simple Labor 198 

Of educate^l Labor 200 

Of the Price paid for the U.-:e of Capital 203 

Causes which occasion Fluctuations in the. Rate of 

Interest 206 

Rent 207 

Of legal Interest .209 



PART THIRD. 

Of the Exchange of V/ealth. 

The different kinds of Exchange 215 

Section I. — Of Barter in General, or Exchange in Kind.. 

I. The Necessity of Exchanges -...-. ^%Q 

Of the Principles which give rise to Exchange 217 

II. Barter in" General, or Exchange in Kind . . .... 221 

Section II. — Of Exchange by means of a Metallic Cur- 

•rency. 

I. Of the (Qualities necessary to that which consti- 
tutes the Circulating Medium 2-28 

•U. Of the Amount of Money necessary to effect thjg . . 

Exchanges of a Community 235 

Exchanges between Nations 237 

Effect of a Productive Season upon Exchanges 239 

— — — of an Unproductive Season 241 

Of the abundance and scarcity of Money 242 



18 CONTENTS. 

III. Of Banks of Deposite and Exchange 245 

The Evils which they remedy 245 

Bills of Exchange 253 

Section III. — Of Exchange hy means of a Paper Cur- 

rency. 

I. Banks of Discount and Loan ; and of Circulation, 

or Issue Banks, in this Country 256 

Their Nature and Mode of Operation 259 

II. Of the Sources of the Profits of Banks 264 

III. Of the Utility of Banks 266 

As Institutions of Deposit and Exchange 267 

As Institutions of Discount aild Loan 267 

IV. Of the Disadvantages of Banks 273 

Their liability to Forgery 273 

to Fraud and Fluctuation 273 

Of the New-York Safety Fund System 279 



PART FOURTH. 

Of the Consumption of Wealth. 

I. Of the Nature and Different Kinds of Consump- 
tion 285 

Productive and Unproductive Consumption 287 

Consumption for the Increase of Value 287 

— : for the Gratification of Desire 288 

IL Of Public Expenditure 289 

Effects of Public Profusion 290 



AN APPENDIX, 



CONTAINING 



A BRIEF ACCOUNT OF THE POWERS, DUTIES, 
AND SALARIES, OF NATIONAL, STATE, 



CHAPTER I. 

OF NATIONAL OFFICERS. 

Section l.— Of the Executive Department. 

I. Of the Department of State 296 

11. Of the Treasury Department 296 

III. Of the War Department 297 

IV. Of the Navy Department 298 

V. Of the Post-office Department 299 

VI. Of the Mint Department 301 

Section II. — Of the Legislative Department. 

I. The Officers of Congress 302 

II. Their Committees 303 

III. Their Rules 304 



20 CONTENTS. 



Section III. — Of the Judicial Department. 

The Supreme Court— The Circuit Courts— The Dis- 
trict Courts 30G 



Of the Officers of the Courts. 
Attorneys — Clerks — Marshals— Reporters .... 306, 307 



CHAPTER II. 

OF THE STATE, COUNTY, AND TOWN OF- 
FICERS OF THE STATE OF NEW-YORK. 

Section L — Of State Officers. 

I. Of Legislative Officers •. . 308 

Senators — Members of Assembly. 

II. Of Executive Officers 309 

Of the Governor — Lieutenant-Governor — 
Secretary of State — Comptroller — Treasur- 
er^Attorney-General — Surveyor-General — 
State Printer — Governor's Private Secretary 
and Door-keeper of the Executive Chamber 
— Admiaistrative Officers. 

III. Of the Judiciary 319 

Of the Court for the Trial of Impeachments 
and the Correction of Errors— Court of Chan- 



CONTENTS. 21 

eery — The Supreme Court — The Circuit 
Courts — Courts of Oyer and Terminer — 
Courts of Common Pleas — Courts of Gener- 
al Sessions — Courts of Special Sessions — 
Courts of Justices of the Peace. 

Section II. — Of County Officers 323 

Of the Sheriff— Coroners — District Attorney — Judg- 
es of the County Courts — County Clerk — Surro- 
gate — Superintendents of the Poor — County Trea- 
surer — Board of Supervisors — Commissioners of 
Loans — County Sealer — Auctioneers — Inspectors 
of Commodities. 

Section III. — Of Town Officers 333 

Of the Supervisor— Town Clerk — Assessors — Jus- 
tices of the Peace — Collector — Overseers of the 
Poor — Commissioners of Highways — Commis- 
sioners of Common Schools — Inspectors of Com- 
mon Schools— Constables — Town Sealer — Over- 
seers of Highways — Pound-masters — Fence-view- 
ers — Conmiissioners of Excise — Board of Audit- 
ors of Town Accounts — Commissioners of Deeds. 



BOOK I. 



CIVIL POLITY; 



CONTAINING 



ELEMENTS 



OP 



POLITICAL KNOWLEDGE 



AND 



CONSTITUTIONAL LAW. 



PART FIRST 



ELEMENTS 

OF 

POLITICAL KNOWLEDGE 



Natural Liberty — is freedom from all human 
restraint. It is the acting as one's will and pas- 
sions prompt him, restrained only by those laws 
of our nature which the Deity has imposed upon 
us. This kind of liberty can exist only in a state 
of solitude, and never under any form of gov- 
ernment: the very idea of a government pre- 
cludes it. 

Where men have the liberty of doing what- 
ever their passions urge them to attempt, or their 
strength enables them to effect, their very liberty 
becomes savage ferocity : it is the liberty of a 
tiger, and not that of a man. Unbridled liberty 
is the worst of tyranny ; and where there is no 
law, there can be no freedom. 



Wlmt is Natural Liberty ? 

Where, and where only, can it exist ? 

What would natural hberty become if unrestrained? 

8 



26 ELEMENTS OF 

If men were never actuated by wrong motives, 
no codes of jurisprudence would be necessary to 
keep them in the path of duty ; but the design and 
use of a wise government is to restrain the licen- 
tiousness of one portion of community, and to pro- 
tect the other from wrong and injustice. 

Hence arises the necessity of laws which 
abridge the natural liberty of man where its ex- 
ercise would infringe upon the rights of others. 

One man has no right to that unrestrained free- 
dom which seeks his own interest exclusively, 
and disregards the welfare of his fellow men. 

Were men wise enough to seek their i^n/c in- 
terest, it would never be promoted by the viola- 
tion of right and duty; for the laws of the Creator 
are such, that permanent individual good never 
clashes with the general happiness of all. 

From the restrictions placed by a wise govern- 
ment upon the natural liberty of man, there arises 
a more secure and desirable state of freedom, 
called civil liberty. 

Civil Liberty — is beiyig restrained by rid 
law but what conduces in a greater degree 
to the public welfare. After a government has 



Whence arises the necessity of government and laws r 
What is that state of freedom called, which arises from the re- 
strictions placed upon natural liberty ? 
What is Civil Liberty.' 



POLITICAL KNOWLEDGE. 27 

been established, those rights which are retained 
by the people are the residuum of natural liberty, 
which is not required by the laws of society to be 
sacrificed to public convenience ; or they may be 
said to be those civil privileges which society en- 
gages to provide in place of the natural liberties 
given up by individuals. 

Laws which augment the civil liberty of a 
people, must often necessarily restrain the per- 
sonal liberty of individuals. 

Although a person in the freest Republic in the 
world may be imprisoned for a ciime^ his civil 
liberty is not invaded if his confinement is the re- 
sult of a beneficial public law; for, according to 
the definition of civil liberty, the law by which 
his crime is punished conduces in a greater de- 
gree to the public welfare. 

Civil Society — is the umon of a multitude of 
people who agree to live in subjection to certain 
law-s which either the people themselves form, or 
which are left to the regulation of their rulers. 
Nothing can be advanced with certainty respect- 
ing the origin of civil societies. 



What are the rights retained by the people ? 
How may the civil liberty of a people be increased, while the 
personal liberty of individuals is restrained ? 
What is Civil Society ? 



36* ELEMENTS OF- 

Their origin has been attributed —r 

First — To paternal authority — that authority 
which a father exercises over his family — a pa- 
triarch oyer his direct descendants, The little 
band, thus united by the tie$ of kindred and by a 
similarity of views and interests, would naturally 
be kept together after the death of the patriarcl^ 
and his authority be transferred %o some oxud of 
his descendants. 

Second — -Civil society is supposed by some to 
have originated in that fear and diffidence which 
mankind had of one another, which induced thena 
to unite together in order to shelter themselves 
from the evils they apprehended. 

Third — That ambition in the more powerful 
was the cause of reducing the weak to subject 
tion, thus forming the germs of sovereignty and^ 
empire. 

But the varieties of character among the rud-est 
people will not permit us to refer the origin of all 
governments to a general and uniform principle. 
it is more natural to suppose that different cir^ 
cumstances gave rise to different states. 

Law — is a mode of existence, or a state of being. 



To what has the origin of civil societies been attributed ? 
First— Second— Third— Wliat is the most natural suppositiQn 
relating to their origin ? 
Wbal is Iaw ? 



POLITICAt KNOWLEDGE. 29 

It ts not a rule of action only, for inertia is a 
law of matter. The meaning of the term law, 
however, embraces the rules of all action, and con- 
stitutes alike the rules by which the heavenly bod- 
ies move, by which nations are governed and 
plants grow. 

Law, in a political sense, however, signifies 
a rule of human action. In a particular state, 
it is a rule prescribed by the supreme power 
in the State, commanding what is right, and for- 
bidding what is wrong. 

Laio may be divided into four kinds — the Law 
of Nature, Revealed Law, the Law of Nations, 
and Municipal Law. 

The Law of Nature — is the will of the Deity, 
as gathered from his works. 

Revealed Law — is the will of the Deity, as 
expressed by himself in divine revelation. 

The former is what, by the assistance of rea- 
son, we imagine to be the will of the Deity. The 
latter is what the Deity has expressly declared to 
be his will. 



What is law in its most general signification ? 
What is the signification of the term when used i« a political 
gcnse ? 
What is it in a particular state .' 
How may law be divided ? 
What is the Law of Nature ? 
Revealed Law .? 

3* 



30 ELEMENTS OF 

.- The haws of Nations — are those rulea- which 
define the rights and prescribe the duties of na- 
tions, in their mutual intercourse with each other. 

Municipal Law — is a rule of civil conduct 
prescribed by the supreme pow^r in a State.— r- 
Municipal laws are civil or internal, as distin- 
guished from national or external laws. The 
Iaws relative to the descent of property are mur 
nicipal laws] but laws relative to commerce, tp 
war, the army and navy, are external and nja- 
tional. 

Sovereignty — is the highest power. 

Sovereignty destroys the natural liberty of man. 
But a wise sovereignty, whether its power bp 
vested in one man, in a select body of men, or in 
the whole people, does not subvert civil liberty, 
but, on the contrary, contributes to strengthen and 
cement it. 

For a State or Nation to be sovereign, it 
must govern itself without any dependence upon 
another power. It must have no superiors. But 
when a community, city, or State makes part of 
aaother community or State, and is represented 



The laws of Nations ? 

Municipal Law ? 

What is Sovereignty ? 
k With what is sovereignty incompatible, natural or civil liberty ?» 

^' What is necessary in order for a State to be ebvei^eign ?- 



POLITICAL KNOWLEDGE. 81 

with foreign 'powers by that community or State 
of which it i§ a part, then it is not sovereign. 

With respect to the United States, the individ,- 
ual States are not sovereign powers. The Gen- 
eral Government of the United States is sover- 
eign in a national capacity, and that of the States 
in a municipal capacity. The United States gov- 
ernment is the only power which can declare war, 
make peace, enter into treaties, regulate commerce, 
coin money, &c. And these are national objects. 

The States have reserved to themselves the 
power to make municipal laws — those which di- 
rectly concern the States alone— .such a3 those 
which relate to State taxation, descent of property, 
chartered com,panies, police regulations, &c. — 
The States are, therefore, sovereign in their mu- 
nicipal capacity only. 

Euti the gayerument of the United States is 
superior to and sovereign over the governments 
of the States in those cases, in which they are con- 
stitutionally brought into collision. Finally, the 
people of the United States are one nation^ and do 
not consist of many separate sovereignties united 
by a league. 



In the United States are the individual States sovereign powers ? 

In what capacity is the general government sovereign ? 

In what may the States be considered sovereign ? 

Which is superior, the General or the State goyevnnj.outs ' 



32 • ELEMENTS OF 

Government — is the whole body of constituted 
authority. From the very ori^n of society, 
one portion of the people have exercised au- 
thority over the rest. The authority thus ex- 
ercised is called the goveTiimeiit, and it derives 
its just powers from the consent of the gov- 
erned. 

There are four principal forms of government, 
viz: Despotism, Limited Monarchy, Aristocracy, 
and Democracy, or Republic. 

A Despotism — is that form of government in 
which a single individual, without any law, gov- 
erns according to his owm will and caprice. — 
An example of this kind of government may be 
found in Turkey, where the Sultan exercises all 
the powers of sovereignty, with respect to the gen- 
eral administration of public affairs ; but even 
there he is limited by certain customs and rules 
as it respects private justice. 

The advantages of a despotism are unity 
of counsel, activity, decision, secrecy, military 
strength, the exclusion of popular and aristocrati- 



WTiat is Government ^ 

How many, and what are the principal forms of government ? 

What is a Despotism .' 

Where may an example of this kind of government be found ? 

By what is the sovereignty of the Sultan limited? 

What are the advantages of a despotism ? 



POLITICAL KNOWLEDGE. 83 

Qal contentions, and the preventing, by a known 
prder of succession, of all competition for the su-. 
preme power. 

The evils to which it is liable are tyranny, ex-, 
pense, unnecessary w^ars waged to gratify the 
passions of an individual, uncertainty of ob-. 
taining a good prince, ignorance in the rulers 
of the interests of the people, want of con- 
stancy and uniformity in the rules of govern-, 
ment, and, finallyi insecurity of person and prop% 
erty. 

An Aristocracy — is that form of government 
in which the legislature and sovereign power are 
in a select assembly, the members of which either 
fill up by election the vacancies in their own body, 
©r succeed to. their pkces in it by inheritance, pro-, 
perty, or in reject of some personal right ox 
qualification. 

The word aristocracy is of Greek derrvation* 
and is compounded of the adjective aristos, signi- 
fying best or wisest, and kratos, signifying powei? 
or strength. The whole word signifies that form 
of government in which a few^ of the wusest and 
best govern. 



What are the evils to which it is liable .' 

Whit is an Aristocracy .' 

What is the derivation and signification of the word aristocracy } 



^4 ELEMENTS OF 

The theory of this government is certainly a 
very beautiful one ; and if the best and the wisest 
were the rulers, the government would be as per- 
fect as human ingenuity could devise. But the 
practical effects of this form of government are 
often widely different from the advantages prom- 
ised by the theory. 

Aristocracies are of two kinds : First, where the 
power of the nobility belongs to them in their 
collective capacity only ; that is, where, although 
the government resides in an assembly of the or- 
der, yet the members of that assembly, separately 
and individually, possess no authority or privilege 
beyond the rest of the community. 

Secondly, where the nobles are severally in- 
vested with great personal power and immuni- 
ties, and where the power of the Senate is little 
more than the aggregated power of the individ- 
uals who compose it. 

Of these two forms of government, the first is far 
more tolerable than the last. For in the first form 
of aristocracy, although a few members of the 
Senate should be profligate enough to abuse their 

What is said of the theory, as contrasted with the practical ef- 
fects of this form of government ^ 
Of how many kinds are aristocracies ? 
What is the form first mentioned ? 
The second ? 
Which is the more tolerable, and why f 



POLITICAL KNOWLEDGE. 35 

authority, it would still be difficult to obtain the 
consent of a majority to any specific act of oppres- 
sion. 

Or if the Senate had the will to do wrong, 
the power would be more confined; for one ty- 
rant, whether the tyranny reside in a single per- 
son or in a Senate, cannot exercise oppression at 
so many places at the same time as may be exer- 
cised by a numerous nobility over their respective 
vassals and dependents. 

The peculiar advantage claimed for an aristoc- 
racy, is the wisdom which may be expected from 
experience and education. A permanent council 
naturally possesses experience, and the members 
who succeed to their places in it by inheritance, 
will probably be educated with a view to the sta- 
tions w^hich they are destined by their birth to 
occupy. 

The evils to which an aristocracy is liable, are 
dissensions among the ruling orders of the State, 
oppression of the lower orders by the privileges 
of the higher, and laws partial to the separate 
interests of the law^-makers. 

A Democracy — is that form of government 
in which the legislature and sovereign power are 

What peculiar advantage is claimed for an aristocracy ^ 
To whai evils is it liable I 
What is a Democracy ? 



TO ELEMENTS Oi 

in the hands of the people at large. The terrh 
democracy is derived from two Greek words-, 
demos, signifying people, and kratos, signifying 
power, meaning that form of government in which 
*the people rule. 

Democracies are of two kinds: First, where 
the people govern themselves by primary assem- 
blies, as in ancient Athens — a mode which could 
be adopted only v/here the people were chiefly 
citizens of a small country, or inhabitants of one 
city. Secondly, where the people govern them- 
selves by delegates, or through the principles 6f 
representation, as in the United States. The latter 
form of a democracy is more frequently called a 
Republic. 

The advantages of a Democracy or Republic, 
'dre civil liberty, equal laws, regulations adapted 
to the wants and circumstances of the people, pub- 
lic spirit, frugality, averseness to war, and the op- 
portunities which democratic assemblies afford to 
'men of every description of producing their abili- 
Hes to public observation. Here merit seldoEii 



What is the derivation and signification of the word democracy ? 

*0f how many kinds are democracies ? 

What is the kind first mentioned ^ 

The second? 

What is the last mentioned form of a democracy often called? 

What are the advantages of a democracy ? 



POLITICAL KNOWLEDGE. 37 

goes unrewarded, and a field for the display of 
talent is always open. 

The evils to which a democracy is liable, are 
dissensions, tumults, and faction ; the attempts of 
powerful citizens to possess themselves of supreme 
power, and the delay and disclosure of public 
counsels and designs. 

Knowledge and virtue among the people are 
the only conservative principles of a democratic 
form of government. 

A Liinited Monarchy — is formed by a com- 
bination of two or more of these simple forms of 
government — despotism, aristocracy, and democ- 
r^2y; and, in whatever proportion either of these 
forms enters into the constitution of a government, 
in the same proportion may both the advantages 
and the evils which are attributed to that form be 
expected. 

Some limited monarchies are hereditary ; oth- 
ers are elective. 

An hereditary monarchy is universally to be 
preferred to an elective monarchy. A crown 
is too splendid a prize to be conferred upon 



What are the evils to which it is hable ? 

What are the only conservative principles of this form of gov- 
ernment ^ 

How is a Limited Monarchy formed ? 

Why is an hereditary monarchy to be preferred to an elective 
monarchy ? 

4 



38 ELEMENTS OF 

merit, and nothing is gained by a popular 
choice worth the dissensions and tumults with 
which it is invariaby attended. 

Besides, a king who passes to a throne through 
scenes of tumult, and often of bloodshed, will be 
apt to regard one part of his subjects as the asso- 
ciates of his fortune, and the other as conquered 
foes. 

Also, the benefits to be derived from a uni- 
formity of counsels and designs, may be expected 
with greater probability where the supreme pow- 
er descends in the same race, and where each 
prince succeeds in some sort to the aim, pursuits, 
and disposition of his ancestor, than if the crown, 
at every change, devolve upon a stranger, whose 
first care will commonly be to pull down what 
his predecessor had built up. 

The English government is an hereditary lim- 
ited monarchy, and is probably the best kind of 
limited monarchy known. It is formed by a 
combination of the three different forms of simple 
government, viz. — despotism or monarchy, which 
resides in the King — aristocracy, in the House 
of Lords — and democracy, in the House of 
Commons. 



What is the best form of limited monarcliy known.' 
Of what is the English government Gomposed ? 



POLITICAL KNOWLEDGE. 39 

United States Government, 

There were originally three forms of govern- 
ment in the American colonies, viz. — the Char- 
ter — the Proprietary — and the Royal govern- 
ments. 

In the Charter governments, the people were 
allowed the right of choosing their own rulers. 

In the Proprietary governments, the power of 
appointing officers and making laws rested in the 
proprietors, by the advice generally, and with the 
consent of the freemen. 

In the Royal governments, the governor and 
council were appointed by the crown, and the 
people elected representatives to the colonial le- 
gislature. The governor had a negative in both 
houses of the legislature, and most of the officers 
were appointed by the king. 

In 1777, articles of confederation were adopted 
by most of the colonies, under which the Revo- 
lution was terminated. They were a mere league^ 
which did not pretend to be a government, and 
were deficient in nearly all the attributes of sov- 

How many forms of government were there in the American 
colonies? 

What were the Charter governments ? The Proprietary ? The 
Royal ? 

When were the Articles of Confederation adopted, and what 
were they } 



40 ELEMENTS OF 

ereignly. In 1788, the present Constitution 
was adopted by most of the States, and soon after 
by all. 

The government of the United States is found- 
ed upon the consent of the people. The Consti- 
tution asserts that it was formed by *' we the peo- 
ple," and the ratifications of all the States com- 
mence with '* we the delegates of the people " — 
hence, the foundation of our government is the 
consent of the people. Under despotic govern- 
ments, the people have often no voice in the choice 
of their rulers or their laws, and under monar- 
chies and aristocracies frequently very little. 

The government of the United States is a Re- 
public, or Democracy, because the people hold 
sovereign power, and both the legislative and ex- 
ecutive branches of the government are chosen 
by the people. 

It is a Federal Republic, because the Constitu- 
tion recognizes States which are represented in 
one body of the legislature in proportion to their 
respective numbers, and have an equal represent- 
ation in the Senate — because new States may 



When was the present Constitution adopted .'• 

Upon what is the government of the United States founded ? 

IIoAv does this appear ? 

Why is the government a Republic ? 

Why a Federal Republic ? 



1>0LITICAL KNOWLEDGE. 41 

be admitted into the Union, and the United States 
guarantees to these States a republican form of 
government. Hence the United States is a Fede- 
ral Republic, composed of States. 

The government of the United States is a 
Representative Federal Republic, because the 
people act through their delegates. 

It is also a government of majorities. In the 
conventions of the people which ratified the Con- 
fititution, a majority in any one convention made 
the decision, for no other rule could be adopted 
where they were subordinate to no authority but 
their own. Members of the House of Represent- 
atives are chosen by majorities of the people, and 
the House of Representatives decides by majorities. 

A majority of the House of Representatives 
constitutes a quorum. Members of the Senate 
are chosen by majorities of the State legislatures. 
Majorities in Congress decide all questions upon 
which their action is required. 

But there are some exceptions to this rule of 
majorities. 

1st. Where bills have passed both houses of 
Congress, and the President has refused them his 



Why a Representative Federal Republic ? 

Why is it a government of majorities ? 

What three exceptions to this rule of majorities .' 

4* 



42 ELEMENTS OF 

sanction, they may become law if repassed by 
two thirds of each house. 

2d. The President and two thirds of the Sen- 
ate form treaties. 

3d. It requires two thirds of the House of Rep- 
resentatives to make impeachments, and two thirds 
of the Senate to convict a person upon impeach- 
ment. 

The Judges are appointed by the President, 
who is elected by a majority ; and their appoint- 
ments are confirmed by the Senate, who also are 
elected by a majority. The Judges are, therefore, 
appointed indirectly by a majority. They are 
necessarily far removed from popular influence. 

Thus, the whole structure of the government 
is based upon the acts of majorities, and these 
majorities at last rest upon majorities of the whole 
people. The exceptions to this almost universal 
rule, are cases of obvious and urgent necessity. 

Constitution — is the constituted form of gov- 
ernment. It is the fundamental law ; the regu- 
lation which determines the manner in which the 
authority vested in government is to be executed. 



How are the Judges appointed ? 

What is said of the exceptions to the rule of majorities ? 

What is a Constitution ^ 



POLITICAL KNOWLEDGE. 43 

The Constitution of the United States was de- 
lineated by the hand of the people, and ratified by 
them in their original, sovereign, social capacity. 
These ratifications were made in conventions of 
the people^ and in the name of the people, and not 
in the name of the States. Hence, the Constitu- 
tion proceeded from the people, in their sovereign 
capacity. 

The Constitution of the United States acts 
upon both individuals and States. It acts upon 
the States, for almost every article in the Consti- 
tution refers to the States, and requires something 
to be done by them, or prohibits them from doing 
something. It acts upon individuals, because 
Congress has power to tax the people, arm the 
militia, &c. 

The Constitutions of the States act upon individ- 
uals, and not upon the government of the United 
States, nor upon each other. 

They act upon individuals, because State legis- 
lation is mostly municipal, and refers to individ- 
uals only. 

They do not act upon each other, because, as 



By whom was the Constitution of the United States delineated, 
and how ratified ? 
Upon whom does the Constitution of the United States act ? 
Upon wliom do the Constitutions of the States act .' 



44 ELiEMENTS Of 

it respects each other, the States are precisely 
equal. 

They do not act upon the United States, be- 
cause that would be incompatible with the na- 
tional sovereignty of the General Government. 

The government of the United States is per- 
petual, unless abrogated by the will of a majority 
of the people. 

A government justly constituted can be justly 
abrogated only by the same power which brought 
it into existence. A majority of the people, in 
their sovereign capacity, formed the government, 
and they alone, in that capacity, can abrogate it. 

The State governments are not the people in their 
sovereign capacity, and cannot therefore change 
the General Government; for they cannot un- 
make what they never had power to make. As 
the Constitution was formed by a majority of the 
whole people, one State, which must be a minor- 
ity, cannot alter the acts of a majority. 

As the Constitution acts upon individuals, one 
State cannot secede from the Union, and establish 
a separate government of its own, any more than 

WhatJs said of the perpetuity of the government ? 

Who only have the power of changing or abrogating the gov- 
ernment ? 

Why may not the State governments change the General Gov- 
ernment ? 

Why may not a State secede from the Union ? 



POLITICAL KNOWLEDGE, 45 

could a few individuals, or a town. Any less 
number than a majority would subject themselves 
to the penalties of treason, by revolutionary acts. 
The Constitution acts upon individuals, without 
any reference to State lines. 

If the form and principles of the government 
are to be in any manner changed, they must be 
changed by a majority, in the manner pointed out 
by the Constitution. 

The people, indeed, in their sovereign capacity, 
have the power to abolish their form of govern- 
ment, and establish a new one: it is only as- 
serting the common right of all nations, to alter 
and amend their forms of government. That is 
the right of revolution — the last right to w^hich 
oppressed nations resort. Until that right is ex- 
ercised, the Constitution must be perpetual. 

The Constitution of the United States is a writ- 
ten form of government, definite, clear, and ex- 
plicit in its details; so that all may know its prin- 
ciples and its requisitions. It is the first example 
in history where the sages of a nation, delegated 
by, and from among the people, met together to 
form a constitution and laws for their govern- 
ment. 



What is said of the form of the Constitution of the United States^ 
as compared with the Constitutions of other governments ? 



46 ELEMENTS OF 

The forms and principles of most other gov- 
ernments have been constantly changing with the 
character of the times, and with the varying opin- 
ions and manners of the people. They have 
been the results of chance oftener than of design, 
and their constitutions are to be learned only from 
their history. 

The English Constitution is not found in 
any one written article, but consists of acts of 
Parliament, decisions of courts of law, and imme- 
morial usages. 

Statute Law — is the express written will of 
the Legislature, rendered authentic by certain 
prescribed forms. Thus, the statutes of New^- 
York are the laws enacted by the Legislature of 
New -York. 

Statutes are binding only when — first, they 
are executed according to the prescribed forms — 
that is, in the manner specified by the Legis- 
lature. Thus, if the Statute Law declare that 
a will shall be made in a certain form, it will 
not be valid if executed in any other form. 

Secondly, the Statute Laws must be consistent 
with the Constitution; for, the Constitution being 



Of what does the English Constitution consist ? 

What is Statute Law t 

When, and when only, are statutes binding ? 



POLITICAL KNOWLEDGE. 47 

the fundamental law, created by the people them- 
selves, all other laws are inferior to it. 

Common Law — is that body of principles, usa- 
ges, and rules of action, which do not rest for 
their authority upon the positive will of the Le- 
gislature. In other words, it consists of those 
customs and rules to which time and usage have 
given the sanction of law. 

Of such, it is plain, must be the great body of 
the laws of every people ; for the rules of busi- 
ness and the usages of society are so variable 
and complicated as to be incapable of being 
made permanently the subject of statute law. 

Statute law is superior in force to com- 
mon law; and, wherever they are inconsistent 
with each other, the latter gives place to the 
former. 

A Corporation — is defined to be a hody-politic^ 
having a common seal. It is an artificial or polit- 
ical person, maintaining a perpetual succession by 
means of several individuals united in one body, 
through a common seal. 

Corporations have a legal immortality, except 
so far as they are limited by the law of their cre- 



What is Common Law ? 

Of what must be the great body of the laws of every people ? 

Which is superior, Statute or Common Law .' 

What is a Corporation I 



48 ELEMENTS 0^ 

ation. They were originally created for pur- 
poses of charity, trade, and education; but are 
now used for all purposes in which it is wished 
to transmit a common property. 

Thus, all banks, railroad companies, and chart- 
ered societies, are examples of corporations. 

Charter — is the act creating the corporation, 
or separate government; or the privileges be- 
stowed upon a community, or a society of indi- 
viduals. It is derived from the Latin term 
charta, signifying a writing, 

A Party — is any number of persons confed- 
erated by a similarity of objects and opinions in 
opposition to others. Illustrations of this may 
be found in all countries. 

In England, the whigs and tories are two great 
parties, which have long divided the nation. 

In France, during the revolution, the jacobins 
and royalists were violently opposed. 

On the continent of Europe, there have long 
been the parties of the liberals and absolutists. 
The former are advocates of republican, and the 
latter of monarchical principles. 

For what purposes were Corporations originally created, and 
for what are they now used .'' 

What are examples of Corporations ? 

What is a Charter .^ From what is the term derived ? 

What is a Party ? What examples of parties in England ? In 
France ? And on the continent of Europe ^ 



Political knowledge. 49 

In the United States, the federal and demo- 
cratic parties divided the country till the termina-^ 
tion of the last war. 

A Factio7i — is any number of persons, whe- 
ther majority or minority, confederated by some 
common motive, in opposition to the rights of 
other persons, or to the interests of community. 

The difference between party and faction, then^ 
is, that the former is a difference of principUi 
and is founded on a general or public object / the 
latter may have any motive, however personal or 
selfish, and be directed towards any end, however 
little connected with the public welfare. 

Thus, two divisions of the people, differing as 
to how the government shall be administered, are 
parties ; but a section whose object is to keep one 
portion of the people from the enjoyment of 
power, or to aggrandize an individual, or to di- 
vide among themselves all the offices of state, is 
a faction^ 

What is a Factioti ^ What is the difference between Party and 
faction ? Example ? 



ban df'iil^p, 

' rjdi ^VOaV Oi 

•J \t^^-' - 



PART SECOND 



CONSTITUTIONAL L A w!*' ' 



Origin of the Constitution of the United States. 

.,,[The continent of North America was chiefly 
(Settled by emigrants from Great Britain, who 
came out as colonists of the mother country. 

Many of them had fled from persecution in Eng- 
land, for advocating principles in opposition to the 
established religion, and, voluntarily abandoning 
the comforts and luxuries of home, they were 
willing to encounter the dangers and privations 
of a wilderness, that they might enjoy greater lib- 
erty of conscience, and a more simple and a purer 
form of worship. 

Others were induced by the thirst for novelty 
and the desire of adventure, and some were sent 
out by the government to form settlements and 
secure possession of the country. 

But they still coqsider^ themselves subjects of 



52 CONSTITUTION OF THE 

Great Britain, and submitted to the jurisdiction 
of her laws. 

In some parts of the country they were left 
for a while to govern themselves, and adopted 
democratic forms of government; in other parts 
the lands were granted by charter to individ- 
uals, who formed settlements and regulated the 
governments W their respective colonies ; and in 
other parts governors were appointed by the 
crown. 

Difficulties soon arose between the American 
colonies and the mother country, which continued 
to increase during a period of more than one hun- 
dred and fifty years, until the colonies, harassed 
by repeated injuries and usurpations, and by the 
exercise of an unwarrantable jurisdiction over 
them, were obliged to resort to arms in defence 
of their rights, and to dissolve their allegiance to 
the British crown. 

A form of government was then necessary, 
and ^'Articles of Confederation" were adopted, 
under which the Revolution was brought to a 
happy termination. But the Articles of Confede- 
ration being a mere league between the several 
States, were found to be a very inefficient form 
of government, and the necessity of revising the 
system goon became apparent. 



UNITED STATES. 53 

In 1787, delegates appointed by the several 
States for this purpose met at Philadelphia ; the 
result of whose deliberations was the adoption by 
them, and the ratification by the States, of the 
present Constitution, which, from that period^ 
has continued in successful operation. 

The importance of a knowledge of the prinei* 
pies of the Constitution, not only to every oae 
who aspires to the character of a gentleman and 
a scholar, but to every citizen of the Republic^ 
however humble his station, is at once evident, 
from the very system of the government under 
which w'e live — a government in which the peo- 
ple are the rulers —a government in which every 
citizen is a legislator, and may aspire to the high- 
est offices within the gift of the people. 

The Constitution of the United States is the pJan 
of the first civil government ever established upon 
the genuine basis of freedom, and its principles 
should be studied both on account of their pre-eini- 
nent excellence, and because an acquaintance with 
them will better enable a person to fulfil those 
duties which, in a free government, he may b^ 
called to discharge. 

5* 



54 CONSTITUTION OF THE 



CONSTITUTION OF THE UNITED STATES. 

PREAMBLE.'^ 

We, the people of the United States, in order 
to form a more perfect union, establish justice, in- 
sure domestic tranquillity, provide for the common 
defence, promote the general welfare, and secure 
the blessings of liberty to ourselves and our pos^ 
terity, do ordain and establish this Constitution 
for the United States of America. 



^ A preamble is a preface or introduction, the object of 
which is to announce the character and design of the 
work to which it is prefixed. 

The preamble to the Constitution asserts that the power 
which formed the Constitution resides in the people^ and 
that the objects of the Constitution are to secure th« 
RIGHTS, and to provide for and promote the general welfare 
of the people. 



What is the object of tlie Constitution, as expressed \n the pre- 
amble ? What is a preamble ? 



UNITED STATES. 55 

ARTICLE L 

Of the Legislature, 

SECTION I. 

All legislative^ powers herein granted shall be 
vested in a Congress^ of the United States, which 
shall consist of a Senate and House of Represent- 
atives. 



Sectio7i 1st. 

'^ Legislative paiver is the law-making power. Thus, 
in a Republic the Legislature is that branch of the govern- 
ment in which the people have vested the power to make 
laws. 

b Congress is a meeting for the settlement of national 
affairs^ whether relating to one or more nations. In Eu- 
rope a conference of different powers by their ministers 
is called a Congress, as the meeting of ambassadors at 
Laybach was called the Congress of Laybach. In the 
United States the National Legislature is called the 
Congress. 

The object in dividing the legislative power between 
two bodies, is to render measures less precipitate, and 
combine virtue, wisdom, and experience. A hasty decis- 
ion, or an unwise law, is not as likely to be passed when 
it is liable to be arrested in its passage through tico hou- 
ses, and the decisions of one house to be subjected to a 
jealous and critical review in the other. 

The members of the House of Representatives coming 
directly from the people, will naturally be retained within 
their influence; while the Senate, being chosen for a 

Art. 1st. — In what is the legislative power vested.? What is 
legislative power? Wh^t is a Congress? What is the ohject iu 
dividing the legislative power between two bodies ? 



56 COXSTTTUTION OF THE 



SECTION II. 

First Clause. — The House of Representatives 
shall be composed of members chosen every 
second year by the people of the several States, 
an4 the electors^ in each State shall have the 

longer period, ^nd by the Legislatures of the States, will 
be less dependent upon the people, and consequently far- 
ther removed from the action of popular passion. It is 
the same principle which regulates the distri\)utioii of 
legislative power in Great Britain and in France. Sa 
also, the legislative power of the State governments is 
similarly vested in two houses^ 

Section 2d.—Firsi Ctcmse. 

The period for which a representa|ive is chosen, is two 
years. In England members of the House of Commons 
are chosen for seven years. In some of the State Legis- 
latures the period is two years; in others six months. 
The object in having frequent elections, is to make the 
representativ^e more directly responsible to the people, 
and to have the views and interests of the people repre- 
sented ; yet its effect is also to render the representative 
less independent, and place him more under the influence 
of party and sectional interest. Virtue and intelligence 
in the people are the only means which will secure the 
same qualities in their representatives; and while the 
people remain virtuous and intelligent^ no danger cau 
arise frona frequent elections. 

* An eledox is one who has a vote in the choice of an 

Sec. 2d. — !«/ Oft?<5i?.— Of wliom is the House of Representatives 
composed ? What ar« the qualifications of electors of repre^sent- 
atives t What ia the object iv\ havii^ frequent eleptiops ? And 



UNITED STATES. ^f 

qualifications requisite for electors of the moM 
numerous branch of the State Legislature. 

Second Clau e. — No person shall be a repre- 
sentative who shall not have attained to the age 
of twenty-five years, and been seven years a citi- 
zen of the United States, and who shall not, when 
elected, be an inhabitant of that State in which he 
shall be chosen. 

Third Clause, — Representative and direct tax- 
officer. " The electors in each State," here spoken of, are 
those who are entitled, by the laws of the State, to vote for 
members of the most numerous branch of the State Le- 
gislature ; consequently, those who are entitled to vote 
for members of this branch of the State Legislature, may 
yote for members of thjs House of Representatives. And 
as the right of suffrage is now almost universal to Ameri- 
can citizens of twenty-one years of age, nearly all have a 
voice ia the choice of their rulers. 

Second Clause. 

It has been decided that a man residing at the seat of 
government in his official capacity, does not cease to be 
a legal inhabitant of the State of which he was a citizen; 
jconsequently, such person is entitled to all the privileges 
of a citizen, and is eligible to an office in the State from 
which he came, 

Tkird Clause. 

The appointment of representatives was one of the 

what, furthermore, is its effect ? What is an " elector ?" Wlio are 
the electors spoken of in this clause of the Constitution ? 

2d Clause. — What qualifications are required of a representa- 
tive ? What is said of the citizenship of a man residing officially at 
the seat of government ? 

^ Clause,— Uo'w are representative a aod cjireci taxes apportion^ 



58 CONSTITUTION OF THE 

es shall be apportioned among the several States 
Avhich may be included within this Union, ac- 
cording* to their respective numbers, which shall 
be determined by adding to the w^hole number of 
free persons, including those bound to service for 
a term of years, and, excluding Indians not taxed, 
three fifths of all other persons. The actual enu- 
meration shall be made wnthin three years after 
the first meeting of the Congress of the United 
States, and within every subsequent term of ten 
years, in such a manner as they shall by law di- 
rect. 

The number of representatives shall not ex- 
ceed one for every thirty thousand, but each 

greatest difficulties the framers of the Constitution had to 
encounter. The smaller States claimed a right, as inde- 
pendent sovereignties, to an equal share in the General 
Government ; while the larger ones insisted upon having 
an influence proportioned to the number of their inhabi- 
tants. But a compromise was finally effected, by which 
the larger States were allowed their just share of influ- 
ence in one house, and the equality of the smaller States 
was recognized and admitted in the other. 

The representative population is not the whole popula- 
tion of the United States ; for, after including all free per- 
sons, excluding Indians not taxed, it includes "three 
fifths of all other persons." The " other persons" here 

ed among the States ? How often must the citizens be enumerated 
for this purpose ? What difficalty had the framers of the Consti- 
tution to encounter in the appointment of representatives ? What 
compromise was effected .'' Wlio are the " other persons" spoken 
of in this clause, and what is said of the representation of the 



UNITED STATES. 59 

State shall have at least one representative, and 
until such enumeration shall be made, the State 
of New-Hampshire shall be entitled to choose 
three, Massachusetts eight, Rhode Island and Pro- 
vidence Plantations one, Connecticut five, New- 
York six, New- Jersey four, Pennsylvania eight, 
Delaware one, Maryland six, Virginia ten. North 
Carolina ^ve^ South Carolina five, and Georgia 
three. 



mentioned are slaves, consequently the slaveholding States 
have a representation for three fifths of the whole number 
of slaves. Thus, the citizens of slaveholding States have, 
individually, greater political power than the citizens of 
non-slaveholding States ; but this was a necessary result 
of the compromise, without which it is probable the Union 
would never have been formed. But direct taxes are also 
to be apportioned by the same rule as representation, so 
that the same cause which increases their influence in 
the National Legislature, subjects them to the necessity of 
making larger contributions to the national treasury 
when that mode of taxation is resorted to. 

The mode of ejecting representatives to Congress is not 
the same in the several States. In some it is by general 
ticket, as in New- Jersey ; in others by the district system^ 
as in New- York and Pennsylvania. 

The ratio of representation is a common divisor of 
the numbers in the several States, and not in the whole 
Union. The ratio has been changed from time to time 
by Congress. In 1790, the period of the first census, the 
ratio, or the number of citizens entitled to a representa- 
tive, w*as 33,000, and the whole number of representatives 
was 106. In 1830, the ratio was 47^700, and the whole 
number of representatives 240. 

slaveholding States ^ What is understood by the ratio of repre- 
sentation ? What was the ratio of representation in 1830) 



60 CONSTITUTION OF THE 

Fourth Clause. — When vacancies happen in 
the representation from any State, the executive 
authority thereof shall issue writs of election to 
fill up such vacancies. 

Fifth Clause. — The House of Representatives 
shall choose their Speaker, and other officers, and 
shall have the sole power of impeachment.* 

Fourth Clause, 

The necessity for this clause frequently arises by virtue 
of the death or resignation of members of Congress. 

Fifth Clause, 

The Senate also choose their own officers, with the ex- 
ception of the Speaker. The Vice-President of the Uni- 
ted States is Speaker of the Senate, 

"• Impeachment is a public acctisation, by a body author- 
ized to make it. Such were the charges preferred by the 
British House of Commons, against Warren Hastings, 
Governor-General of India ; and in this country, by the 
House of Representatives, against Samuel Chase, one of 
the Judges of the Supreme Court. 

The power of impeachment, as vested in the House of 
Representatives, extends only to public national officers. 
This power is one of the most important under the Con- 
stitution. It is the only mode in which the Judiciary is 
made responsible, and it is a salutary and necessary 
check upon the President and his officers. 

The mode of impeachment is this : — The House pass a 

Ath Clause.—V^hdii is the fourth clause"? 

blh Clause.— By whom is the Speaker of the House of Repre- 
sentatives chosen ? Who is Speaker of the Senate ? What is im- 
])eacli)nent? What are examples.^ What officers may be im- 
peached by the House ? What is the mode of impeachment ? 



UNITED STATES. 61 

SECTION III. 

First Clause. — The Senate of the United 

resolution to impeach, and then appoint a committee to 
manage the impeachment, and prepare the articles of ac- 
cusation. The Senate, (upon whom devolves the power 
of trying the person impeached,) are then informed that 
such charges are preferred by the House, and resolve, that 
on a given day, the Senate will sit as a Court of Impeach- 
ment. 

In the meantime, the accused is summoned to appear 
and answer, and as many subpoenas for witnesses are is- 
sued as either party may direct. At twelve o'clock, on the 
day of trial, the Secretary of the Senate administers an 
oath to the President of the Senate, that " he will do im- 
partial justice, according to the Constitution and laws of 
the United States." The same oath is then administered 
by the President, to each Senator present. 

Witnesses are examined and cross-examined in the 
usual manner. Cluestions proposed by Senators are re- 
duced to writing, and put by the President. Counsel are 
then heard for the respective parties ; all motions are ad- 
dressed to the President, and decisions are made by ayes 
and 7iays, without debate. 

After the case has been fully considered, the question is 
propounded by the President of the Senate, io each indi- 
vidual member, whereupon the member rises and answers 
guilty, or not guilty, as his opinion is. It requires two 
thirds to make a conviction. 

If the accused be found guilty, the Senate proceed to 
fix and declare the punishment. 

State officers may be impeached in a similar manner 
by the Legislatures of the several States. 

This mode of impeachment and trial, is derived from the 
British Parliament, where the Commons have the sole 
power of impeachment, and the House of Lords the power 
of trial. 

Sec. 36.—\st Clatise,— Who compose the Senate ? For how 

6 



62 CONSTITUTION OF THE 

States shall be composed of two Senators from 

each State, chosen by the Legislature thereof, for 

six years; and each Senator shall have one vote. 

Second Clause. — Immediately after they shall 

Section Zd. — First Clause. 

In the Senate, each State is equally represented. It has 
been said that this feature of the Senate, is an evidence of 
the separate and independent existence of the States. Yet 
the conrary is shown by the fact, that the Senate votes not 
by States, but by persons. Hence the members from a 
given State, may and often do vote on opposite sides of a 
question. 

The true theory of our government is, that our Senators 
and Representatives should legislate for the whole Union, 
and not exclusively for the interests of a particular sec- 
tion. It is, however, supposed that each will be best ac- 
quainted with the interests of his immediate constituents ; 
that he will represent their interests, and make known 
their wishes, and then endeavor, as far as possible, to unite 
the interests of each section in the common welfare. 

The Senators being chosen by the State Legislatures, it 
is settled by the practice of most of the States, that they 
may be chosen by joint ballot of both houses, and not ne- 
cessarily by ..the Legislature, in its official capacity ; each 
house having a negative on the other. 

Second Clause. 

Care is taken that hut one vacancy shall occur at the 
same time, in the representation of any one State. The 

long a term are Senators chosen ^ As each State is equally repre- 
sented in the Senate, is not this an evidence of the separate and 
independent existence of the States .'* What interests should be 
regarded in the legislation of Congress .'' What is the manner of 
choosing Senators by the State Legislatures .-' 
2d Clause.— Ho^ were the Senators divided after thieir first elec- 



UNITED STATES. 6^ 

be assembled, in consequence of the first election, 
they shall be divided, as e'\ually as may be, into 
three classes. 

The seats of the Senators of the first class, shall 
be vacated at the expiration of the second year ; 
of the second class, at the expiration of the fourth 
year; and of the third class, at the expiration of 
the sixth year ; so that one third may be chosen 
every second year ; and if vacancies happen, by 
resignation or otherwise, during the recess of the 
Legislature of any State, the Executive thereof 
may make temporary appointments, until the next 
meeting of the Legislature, which shall then fill 
such vacancies. 

Third Clause. — No person sha.ll be a Senator 
who shall not have attained to the age of thirty 

Governor of a State can make no appointment of a Sena- 
tor, in anticipation of a. vacancy. The vacancy must exist 
"W'hen th€ appointment is made. 

Third. Clause. 

The age required for a member of the House of Repre- 
sentatives, is only twenty-five years. The nature of the 
Senatorial trust requiring, in many particulars, greater 
maturity of judgment, and more extensive information, 
renders this distinction very proper. 

tion ? How are vacancies supplied which happen during the 
recess of the Legislature of a State ? If th€ Yacancy be antici- 
pated ? 
2>d CTa?^5£.— What qualifications are requisite for a Senator? 



64 CONSTITUTION OF THE 

years, and been nine years a citizen of the United 
States, and who shall not, when elected, be an in- 
habitant of that State for which he shall be 
chosen. 

Fourth Clause. — The Vice-President of the 
United States shall be President of the Senate ; 
but shall have no vote, unless they be equally di- 
vided. 

Fifth Clause. — The Senate shall choose their 
other officers, and also a President pro tempore, 
in the absence of the Vice-President, or when he 
shall exercise the office of President of the United 
States. 

Sixth Clause. — The Senate shall have the sole 

Fourth Cla%tsc. 

The Vice-President has the power of preserving order 
in the Senate, and all questions of order are decided by 
him, without debate, subject to appeal to the Senate. 

Fifths Sixth, and Seventh Clauses. 

In England, the judgment upon impeachments, extends 
not only to removal from office, but to the whole penalty 
attached by law to the offence. The House of Lords 
may, therefore, inflict capital punishment, banishment, or 
forfeiture of goods, according to its discretion. 

4ith Clause. — Who is President of the Senate, and when only 
may he vote ? What are the powers of the Vice-President? 

5th Clause. — How are the other officers of the Senate chosen ? 

6th Clause. — Who try impeachments ? Who presides when 
the President of the United States is tried ? 



UNITED STATES. 65 

power to try all impeachments. When sitting 
for that purpose, they shall be on oath, or affirma- 
tion. When the President of the United States 
is tried, the Chief Justice shall preside ; and no 
person shall be convicted without the concurrence 
of two thirds of the members present. 

Seventh Clause. — Judgment, in cases of im- 
peachment, shall not extend farther than to a 
removal from office, and disqualification to hold 
and enjoy any office of honor, trust, or profit, un- 
der the United States ; but the party convicted 
^hall, nevertheless, be liable and subject to indict- 
ment, trial, judgment, and punishment, according 
io law- 

SECTION IV. 

First Clause. — The times, places, and man- 
ner of holding elections for Senators and Repre- 

Section UL — F^rst Clause. 

Although Congress has the power to appoint the tiriies 
and modes of choosing Senators and Representatives, this 
power has never been exercised by them. It might be 
well to have the times and modes of election uniform ; but 
they are now various in the several States. 

7th Clause. — In the trial by impeachment, how far may judg- 
ment extend .'' How is it in England .' 

Sec. 4:th.—lst Clause.— Who determine the time, places, and 
manner of holding elections for Senators and Uepresentatives ? 
What power has Congress over the matter f 

6* 



66 CONSTITITTION OF THE 

sentatives, shall be prescribed, in each. State, by 
the Legislature thereof; but the Congress may, 
at any time, by law, make or alter such regula- 
tions, except as to the places of choosing Senators. 
Second Clause. — The Congress shall assem- 
ble at least once in every year, and such meeting 
shall be on the first Monday in December, unless 
they shall, by law, appoint a different day. 

SECTION V. 

First Clause. — Each house shall be the judge 
of the elections, returns, and qualifications of its 
own members, and a majority of each shall con- 
stitute a quorum to do business ; but a smaller 
number may adjourn from day to day, and may 
be authorized to compel the attendance of absent 
members, in such manner, and under such penal- 
ties, as each house may provide. 

Section bth. — First, Second, and Third Clauses. 

It has been a serious point of controversy, whether the 
Senate can expunge from the journal the acts passed in 
a previous session, without violating the third clause of 
this section. 



2d Clause.— How often innst Congress assemble .'* 
Sec. 5th, — 1st Clause. — Who is to judge of the validity of the 
elections and qualifications of members of Congress .'' 



UNITED STATES. C? 

Second Clause. — Each house may determine 
the rules of its proceedings, punish its members 
for disorderly behavior, and, with the concurrence 
of two-thirds, expel a member. 

Third Clause. — Each house shall keep a 
journal of its proceedings, and, from time to time, 
publish the same, excepting such parts as may, 
in their judgment, require secrecy ; and the yeas 
and nays of the members of either house, on any 
question, shall, at the desire of one fifth of those 
present, be entered on the journal. 

Fourth Clause. — Neither house, during the 



The clause, '' to keep a journal," would seem to implVy 
that the journal should be legible, and should in no man- 
ner be defaced ; otherwise, if black lines may be drawn^ 
and words written across a recorded resolution, at the 
pleasure of a succeeding Senate, the clause in the Consti- 
tution is a nullity. 

It has been said, that a recorded resolution may be " ex- 
punged" from the journal, without being " destroyed" — 
the journal is published, and the resolution also, as it was 
passed. But if, in any succeeding act, reference should be 
made to the journal, the best, and in all cases the ultimate 
authority, Avould be the journal as " kept" by the House. 

It would seem a dangerous precedent to establish, that 
one Congress might erase from the journal whatever it 
deemed unwise, unjust, or unconstitutional in the legisla- 

2d Clause. — ^How may a member of either house be expelled .'' 
3c? Clause. — What duty is enjoined upon each house, relative to a 

journal of its proceedings? What controversy has arisen from 

this clause ? 
Mh Clause.-— What length of time may either house adjourn^ 

without consent of the other ? 



68 CONSTITUTION OF THE 

session of Congress, shall, without the consent of 
the other, adjourn for more than three days, nor 
to any other place than that in which the two 
houses shall be sitting. 

SECTION VI. 

Fir$t Clause. — The Senators and Represen- 
tatives shall receive a compensation for their ser- 
vices, to be ascertained by law, and paid out of 
the Treasury of the United States. 

They shall, in all cases, except treason,^ fel- 
ony,^ and breach of the peace, ^ be privileged from 

tion of former houses. Where the acts of a former Con- 
gress were deemed unjust, or unconstitutional, there 
could certainly be no constitutional objection to the intro- 
ducing of counter resolutions. 

Section 6th — First Clause. 

^ Treason consists in one or more of these three things 
— levying war against the United States — adhering to 
their enemies — giving them aid and comfort. The war 
must be actually levied, to constitute treason ; a conspira- 
cy to levy war, is not treason. 

b Felony^ according to the English law, is any crime 
which occasions a forfeiture of lands and goods. But 
felony, in common speech, signifies any capital offence. 

c The term "breach of peace," includes all indictable 
offences. 

Sec. 6th. — Is^ Clause.— \n what cases are Senators and Repre- 
sentatives privileged from arrest .'' What is treason .' Felony ? 
Breach of the peace.' 



UNITED STATES. GO 

arrest durino- their attendance at the session of 
their respective houses, and in going to and re- 
turning from the same ; and, for any speech or 
debate, in either house, they shall not be ques- 
tioned in any other place. 

Second Clause. — No Senator or Representa- 
tive shall, durinof the time for which he was elect- 
ed, be appointed to any civil office, under the au- 
thority of the United States, w^hich shall have 
been created, or the emoluments whereof shall 
have been increased during such time ; and no 
person, holding any office under the United States, 
shall be a member of either house, during his 
continuance in office. 



SECTION VII. 

First Clause. — All bills for raising revenue, 

For a speech, merely delivered in the House, a mem- 
ber cannot be questioned; yet, if he pitblish the speech, 
and it contain a libd^ he is liable to an action for it as in 
any other case. 

Section 1th. — First Clause. 

Bills for raising revenue do not include all bills which 
bring money into the Treasury. Thus, bills for the sale 

2d Clause. — What restrictions are placed upon Senators and 
Representatives .'' 
Sec. 7th.— Is^ C^awse,— Where must bills for raising revenue 



7*0 CONSTITUTION OF THE 

shall originate in the House of Representatives ; 
but the Senate may propose or concur with amend- 
ments, as on other bills. 

Second Clause. — Every bill which shall have 
passed the House of Representatives and the Sen- 
ate, shall, before it become a law, be presented 
to the President of the United States ; if he ap- 

of public lands, for regulating the Post-office, and Mint, 
are directly productive of money, and may originate in 
either house. The meaning of the phrase is confined to 
bills to levy taxes. 

This provision is borrowed from the British Constitu- 
tion, by which bills for raising revenue must originate in 
the House of Commons, who are the exclusive represen- 
tatives of the people. So tenacious of this privilege are 
the Commons, that the Peers are not even allowed to 
amend a money bill ; they must reject it, or adopt it, as it 
has been framed by the Commons. 

Second Clause. 

The ordinary mode of passing laws, is, briefly, as fol- 
lows : — 

A member of either house, wishing to propose a bill, 
gives at least one day's notice of his intention ; and, on 
the day specified by him, makes a motion accordingly. 
If the motion prevails, the bill is read. On some other 
day, the bill is called up, considered, and passed to a se- 
cond reading. Amendments are then in order. 

In the House of Representatives, bills, after being twice 
read, are committed to a committee of the whole house, 
when the Speaker leaves the chair, and takes part in the 

originate .'' What only do " bills for raising revenue" include ? 
From what is this provision in the Constitution borrowed ? 

2d Clause. — What is necessai-y in order that a bill, passed by 
both houses, shall become a law? What if the President refuse 



UNITED STATES, 71 

prove, lie shall sign it; but if not, he shall return 
it, with his objections, to that house in which it 
shall have originated, who shall enter the objec- 
tions at large on their journal, and proceed to re- 
consider it. 

If, after such reconsideration, two thirds of that 
house shall agree to pass the bill, it shall be sent, 
together with the objections, to the other house, 
by which it shall likewise be reconsidered ; and 
if approved by two thirds of that house, it shall 
become a law. 

debate, as an ordinary member, and a chairman is appoint- 
ed by him, to preside in his stead. 

After being a third time read, the bill is passed, and 
transmitted to the other house, where it goes through a 
similar form ; though in the Senate there is less formality, 
and bills are often committed to a select committee, chosen 
by ballot, instead of a committee of the whole house. 

These regulations are rules of convenience, adopted by 
the two houses, and maybe changed by them at pleasure. 
If a bill be not presented to the President, more than ten 
days before the end of the session, he has it in his pov/er 
to defeat it by simply withholding his signature. 

The power given to the President, of placing his veto 
upon laws passed by Congress, was adopted after much 
discussion and great opposition. It was designed as an 
additional security against the enactment of improper 
laws, and as a defence of the Executive against the en- 
croachments of the Legislature. 

to sign the bill ? What if the bill be not returned within ten days 
after its presentation to him ? What is the ordinary mode of pass- 
ing laws in both houses ^ In what case might the President defeat 
a bill passed by two thirds of both houses ? What was the design 
ill giving the President the power of placing his veto upon laws 



72 CONSTITUTION OF THE 

But, 'in all such cases, the votes of both houses 
shall be determined by yeas and nays ; and the 
names of the persons voting for and ^against the 
bill, shall be entered on the journal of each house 
respectively. 

If any bill shall not be returned by the Presi- 
dent within ten days, (Sundays excepted,) after it 
shall have been presented to him, the same shall 
be a law, in like manner as if he had signed it, 
unless the Congress, by their adjournment, pre- 
vent its return, in which case it shall not be a 
law. 

Third Clause. — Every order, resolution, or 
vote, to which the concurrence of the Senate and 

If the President abuse the veto, it is presumed the Con- 
gress will pass the bill in question, by the constitutional 
majority of two thirds. The power of the President to 
return bills, with his objections, has been repeatedly exer- 
cised. 

The King of England has an absolute negative upon all 
bills passed by Parliament ; but, for more than a century, 
he has not exercised this power — the influence of the 
crown being sufficient to arrest an obnoxious measure in 
its passage through Parliament. 

Third Clmcse. 

The ''orders, resolutions, and vole," here referred to, 
are not those which relate to the separate and internal 

passed by Congress ? What remedy, if the President greatly 
abuse this power ? What power has tlie King of England in simi- 
lar cases, and is tliat power often exercised .'* 
3d Clause.— Where orders, resolutions, &c. require the concur- 



UNITED STATES. 73 

iJHouse of Representatives may be necessary, (ex- 
cept on a question of adjournment,) shall be pre- 
sented to the President of the United States ; and 
before the same shall take effect, shall be approved 
by him; or, being disapproved by him, shall 
be repassed by two thirds of the Senate and House 
of Representatives, according to the rules and 
limitations prescribed in the case of a bill. 

SECTION VIII. 

Of the Powers of Congress. 

First Clause. -^ The Congress shall have 

gorernment of each house. The President has no right 
to interfere with the sessions of Congress, unless in case 
of disagreement between the two houses, when he may 
adjourn them. 

In this respect, his power is widely different from that 
of the King of England, who may adjourn or dissolve 
Parliament at his pleasure. 

Section Sth, —-[First Clause. 

The clause divided by the semi-colon, has been thought 
b7 some to confer upon Congress two separate powers: 
one " to collect taxes, ^' &c. and the other " to provide for 
th e general welfare.^' But it will hardly bear that con- 
sti'tiction. The power ** to collect taxes," was given for 

renice of both houses, what is necessary in order for them to take 
effcict ? When only may tlie President interfere with the sessions 
of (yongress? How does his power, in this respect, differ from 
that '.of the King of England? 

7 ' 



74 CONSTITUTION OF THE 

power — to lay and collect taxes,^ duties,^ imposts,* 
and excises ;d to pay the debts and provide for 
the common defence and general welfare of the 
United States : but all duties, imposts, and excises, 
shall be uniform throughout the United States. 

the purpose of providing for the general welfare. Conse- 
quently Congress has not the power " to lay and collect 
taxes," unless the general welfare require it. 

^ Taxes, are all contributions, whether of money or of 
commodities, imposed by the government, upon individ- 
uals, for the service of the State. But revenue is the moiiey 
raised for the uses of government, and may be derived 
from various sources, as by the sale of public land, &c., 
or by taxation. Duties, imposts, and excises, are differ- 
ent kinds of taxes. 

b Duties, are taxes required by government, to be paid 
on the importation, exportation, or consumption of goods. 

c Imposts, are taxes required by government, to be paid 
on goods imported. 

d Excise, is a tax on commodities, wherever found : as, 
a tax on the wares of the merchant, on the produce of 
the farmer, &c. The term excise, in this country, has 
been applied to a tax on domestic distilled liquors ; be- 
cause this is the only excise tax that has ever been im- 
posed by government, and this was of short duration. 

This was in 1793, and the law became so odious as to 
excite to acts of open insurrection, in the neighborhcod 
of Pittsburg, Pennsylvania. The display of a militaiy 
force was necessary to quell the insurgents. 

There are two methods of taxation, direct and indirect. 

Sec. 8th. — \st Clause. — What powers are conferred upon Con- 
gress by the first clause of this section.'' How has this clause 
been construed by some .'' What are taxes ? Duties ? Imposts '* 
Excises ? What are the two methods of taxation .-* What is said 
of indirect taxation, and what are the objections against it ? What 
objeCjt is it sometimes supposed to accomplish, separate from'that 
of taxation.' 



UNITED STATES. 75 

Second Clause. — To borrow money on the 
credit of the United States. 

By the former, the tax is assessed directly upon the indi- 
vidual, in proportion to the property which he is known 
to possess, and is independent of his will. By the latter, 
the tax is levied upon various goods imported from for- 
eign countries, viz : — upon tea, coffee, wines, broadcloths, 
&c., which taxes the citizen may avoid paying, by not 
using the articles upon which they are imposed. 

There is, however, a diversity of opinion upon the 
policy of indirect taxation. It is alleged, in its favor, that 
the people do not feel an indirect tax, and willingly pay 
it. This, however, may be an objection. 

In a republic, the people being the fountain of power, 
it would seem more in harmony with the genius of sueh 
a government, that the people should know ichat they pay, 
and when and hoio they pay it. 

Indirect taxes are not levied in proportion to wealth. 
A person worth a million of dollars, may avoid paying 
the tax, by not using the article upon which it is imposed, 
while a poor man may pay a greater amount of taxes. 

A portion of the taxes paid by this method, does not 
accrue to the government. By a duty of twenty-five cents 
per bushel on imported w^heat, the price of all w^heat in 
New- York is liable to be raised twenty-five cents per 
bushel, and government receives only the extra price 
paid upon imported wheat, while the consumers pay into 
the hands of the producers^ the extra price upon Ameri- 
can wheat; thus one portion of the people is paying into 
the hands of another, and not into the hands of govern- 
ment. 

Indirect taxes, therefore, do not fully answer the avowed 
design of taxation. But, by some, they are supposed to 
answer another end, of often greater importance: — the 
protection and encouragement of domestic industry. Du- 
ties upon foreign cloths, raise the price of American 
cloths, and thus give support to domestic manufactures. 

2d Clause. — What power is conferred by the second clause ? 
Why th6 necessity of this power ? 



76 CONSTITUTION OF THE 

Third Clause. — To regulate commerce with 
foreign nations, and among the several States, 
and with the Indian tribes. 



And, thus, a duty upon any foreign article of com- 
merce, gives better support to that class of citizens who 
are engaged in its production or manufacture. {For the 
design and effects of protecting duties^ see Protecting Du- 
ties.) 

Second Clause. 

It is the frugal policy of the government, to tax the peo- 
ple no farther than the necessities of the government de- 
mand. Hence, in case of war, there being no money in 
the treasury to defray the necessary expenses, a resort 
must be had to taxation, or government must have the 
power of borrowing money on the credit of the United 
States. 

This power has been frequently exercised. In 1816, 
the national debt amounted to upwards of one hundred 
and twenty millions of dollars ; but, in 1834, the debt was 
not only extinguished, but statesmen were contending 
about the surplus revenue. 

Third Clause. 

The power to regulate commerce^ comprehends the 
power to regulate navigation^ and extends to every spe- 
cies of commercial intercourse between the United States 
and foreign nations, and among the several States. 

It does not, however, embrace the internal trade be- 
tween Jman and man, in difierent parts of the same State ; 
but Congress may interdict such trade between different 
States. 

Under this clause, Congress has exercised the power of 
imposing duties upon foreign goods, for the protection of 
domestic manufactures. 

3d Clause.— VifYidX power is conferred by the third clause.' 
What does the power " to regulate commerce" embrace ? What 
kind of trade does it not embrace ? What power has Congress 
exercised under this clause ^ What discussion has arisen upon 



UNITED STATES. 77 

Fourth Clause. — To establish an uniform 
rule of naturalization,^ and uniform laws on the 

The exercise of this power by Congress, has been con- 
troverted by some, as unconstitutional. It is admitted by 
all, that duties may be imposed upon any articles what- 
ever, for the 'purpose of revenue; but some deny the 
power to impose these very duties, if protection is the ob- 
ject. 

It is difficult to see why this distinction should be made. 
The result is the same in both cases, whether the power 
be exercised for the purpose of revenue or protection. 
All duties imposed upon foreign articles create a revenue, 
and also protect the domestic manufacture of those ar- 
ticles. 

If Congress impose duties upon foreign broadcloths, 
who shall determine the constitutionality of the act ? For 
Congress has merely to declare its motive to have been 
revejiue, and it has transgressed no law. 

It is thought it would be a better rule, to test the consti- 
tutionality of legislative acts, by their tendency and obvi- 
ous effects, and not by the motives of the legislators ; for 
the effects of legislation may be better known than the 
motives of the legislators. And, where the effects are the 
same, (as they are in these two cases,) the action must be 
equally constitutional. 

But the Constitution also gives Congress power "to 
make all laws which are necessary to promote the gene- 
ral welfare." If, therefore. Congress deem the protec- 
tion of domestic manufactures necessary to promote the 
general welfare, the Constitution certainly gives the 
power to make laws for that purpose. 

The question relative to such protecting duties, appears, 
then, to be one of policy, and not of right. 

An Indian tribe, within the limits of a State, is not 
considered a foreign nation, but is entitled to sue in the 
courts of the IFnited States. 

Fourth Clause. 
* Naturalization, is the act by which a foreigner is 

this question? How is an Indian tribe, wlttiin the limits of a State, 
considered \nth regard to its nationality ? 

7* 



78 CONSTITUTION OP THE 

subject of bankruptcies,^ throughout the United 
States. 

made a citizen. The law by Avhich this is permitted, is 
called a naturalizatioii laiv ; and the acts by which a 
party avails himself of this law, are the noMralization. 

America is believed to be the only country, where a 
general law is enacted for this purpose. In England, and 
most other countries, it may be done, as a matter of spe- 
cial favor ; but, even then, the privilege never extends 
so far as to make a foreigner eligible to the higher offices 
of State. 

The States have no authority to pass laws of natural* 
ization ; and this is an exclusive power of the United 
States. By acts of Congress, on this subject, an alien of 
full age^ may become a citizen of the United States, after 
a residence of five years in thS^country, upon complying 
with certain requisitions, among which are, a renuncia- 
tion of all allegiance to every foreign prince and power, 
and a declaration, on oath or affirmation, that he will 
support the Constitution of the United States. 

The children of naturalized persons, if dwelling within 
the United States, are considered citizens of the United 
States. 

^ Bankruptcy, is the act of becoming a bankrupt. Bank-' 
rupt and bankruptcy, are legal terms, signifying a par- 
ticular kind of insolvency, or failure to pay one's 
debts. In common speech, one who cannot pay his 
debts, is a bankrupt ; but it is not so in law. Thus, by 
the law of England, a bankrupt is a trader who secretes 
himself, or does other acts tending to defraud his credi- 
tors. 

There is now no national bankrupt law. Congress 
passed a temporary bankrupt lawjn 1800, but the law 
was repealed in 1803. In the absence of a general bank- 

Ath Clause. — Wliat powers are conferred by the fourth clause ? 
What is naturalization .'* May the States pass laws of naturaliza- 
tion .^ How may an alien become a citizen '? What is bankruptcy ? 
Have we any general bankrupt law .' How is its place supplied r 



UNITED STATES. 79 

Fijth Clause, — To coin money, regulate the 

value thereof, and of foreign coin, and fix the 
standard of weights and measures. 

Sixth Clause, — To provide for the punish- 
ment of counterfeiting the securities and current 
coin of the United States. 



rupt law, the States have passed bankrupt laws, which 
are valid only between the citizens of the State by which 
the law was passed. Should Congress pass a general 
law upon this subject, however, the State laws would be 
void so far as inconsistent with it. 

FifiJi Clause. 

The power to coin money, has long been exercised, and 
the Mint Department has been established for that pur- 
pose. Any person may bring gold and silver to the mint 
to be coined, and if it be of the standard value, it is coined 
free of expense ; otherwise, enough is retained to pay the 
expense of coinage. 

Congress has not yet passed any general law, fixing 
the standard of weights and measures ; but such a law 
would conduce greatly to the accuracy of trade, and the 
convenience of commerce. 

Sixth Clause. 

Connected with the power to coin money, and regulate 
the value thereof, Congress has the right " to provide for 
the punishment of counterfeiting the securities and cur- 
rent coin of the United States." 

It is of great importance that the laws regulating the 
currency, should be the same throughout the Union ; and 
as Congress legislates for the lohole people, the power is 
most properly placed in their hands. 

hth C7aMse.— What powers are conferred by the fifth clause ? 
Uh C?a«5fe.-— What powers are conferred by the sLxthdaus^ 



80 CONSTITUTION OF THE 

Seventh Clause, — To establish post-ofHces and 
post-roads. 

Seventh Clause. 

There are now upwards of twelve thousand post-offices 
in the United States, and the number of miles in post-roads, 
more than one hundred forty thousand. To establish post- 
offices and post-roads, means simply, to designate any 
road upon which the mail shall be carried, and appoint, 
in any given place, a postmaster. 

Congress have, also, passed laws for the safety and 
speedy transportation of the mail. Of such importance 
is the speedy transmission of the mail considered, that 
even a stolen horse found in a mail stage, cannot be 
seized, nor the driver arrested for civil process, in such a 
way as to obstruct the mail ; but the driver may be ar- 
rested for breach of the peace. 

Under this clause, and that of providing for the gener- 
al welfare, has risen the question of Internal Improve- 
Ttients. Congress have repeatedly passed laws and made 
appropriations for internal improvements, in the con- 
struction of roads, canals, &c., and the improvement of 
water-courses ; but the constitutional power has long been 
a subject of discussion, and is not yet settled. Legislative 
authority has invariably been in favor of the constitu- 
tionality of the power, but the executive has been mostly 
against it. 

During the administrations of Washington and the elder 
Adams, the subject was little examined, and no executive 
opinions were formally advanced. Both Mr. Jefferson 
and Mr. Madison denied the constitutionality of the pow- 
er, but recommended the grant of such powers by the 
States, in the way provided by an amendment of the 
Constitution. Mr. Monroe, in his first message to Con- 
gress, declared his agreement with his predecessors, but 

7tk Clause. — What powers are conferred by the seventh clause? 
What is the meaning of the phrase, " to establish post-ofRces and 
post-roads?" What important question has arisen under this 
clause ? What were the opinions of the various Presidents upon 



UNITED STATES. 81 

Eighth Clause. — To promote the progress of 



after the passage of a resolution by Congress affirming 
the power, he withdrew his opposition, and during his ad- 
ministration appropriations for internal improvements 
greatly increased. 

Mr. John Gluincy Adams strongly recommended and 
encouraged internal improvements ; and during his ad- 
ministration the system seemed to have become a part of 
the permanent policy of the country. Mr. Adams ad- 
mitted the entire constitutionality of the power to make 
internal improvements by the general government. 

Thus far, all the Presidents were in favor of the mea- 
sures themselves ; but some were opposed to them on coti- 
stitutional grounds^ deeming it unsafe to exercise pow- 
ers not expressly granted. President Jackson, however, 
not only denied the constitutionality of the power, but 
was opposed to the m^easures themselves, upon the ground 
that the power of appropriating money was unsafe and 
insufficient for the successful prosecution of national 
works. 

The Supreme Court has given no direct decision upon 
the subject. It has, however, decided that a contemporary 
exposition of the Constitution, practised und acquiesced 
in for a number of years, fixes the construction of the 
Constitution, and the Court will not alter or shoJce it. It 
has also decided that there is nothing in the Constitution 
of the United States which excludes incidental or implied 
powers. This would seem to show an inclination in the 
Supreme Court to sustain the power claimed by Con- 
gress. The power, although strongly opposed by some, 
has long been exercised, and appears to be sanctioned by 
public opinion. 

Eighth Clause. 

By acts of Congress, "patents may be obtained for any 
new and useful art, machine, manufacture, or composi- 

the subject of internal improvements ? What decisions of the Su- 
preme Court seem to affect this question 1 
8th Clause.— Wh^t powers are conferred by the eighth clause i 



82 CONSTITUTION OF THE 

science and useful arts, by securing, for limited 
times, to authors and inventors the exclusive right 
to their respective writings and discoveries. 

Ninth Clause, — To constitute tribunals infe- 
rior to the Supreme Court. 

Tenth Clause. — To define and punish pira- 

tion of matter not known before the application." The 
term for which a patent may be obtained is fourteen 
years. Copy-rights may be secured for twenty-eight 
years, and at the expiration of that time the patentee, or 
(if he be dead) his wife or children, may renew it for 
fourteen years longer. The term for copy-rights was 
formerly fourteen years, the same as for patents. 

The acts of Congress upon this subject assign to an 
author or his assignee the sole right and liberty of pub- 
lishing and selling his work, and to a patentee the full 
and exclusive right and liberty of constructing, using, and 
selling to others his invention or discovery within the 
time limited for the enjoyment of their respective privi- 
leges. For the violation of a patent, the trespasser must 
pay to the patentee three times the actual damage proved 
to have been sustained. The penalty for infringing a 
copy-right is the forfeiture of every volume so printed to 
the author, and the foifeiture of fifty cents for every sheet 
printed, one half to the author, and one half to the United 
States ; and furthermore, to pay the author all the dama- 
ges which he may prove to have sustained. 

Ninth Clause. 

The power given by this clause will be examined 
under the article which relates to the judiciary. 

For what length of time may patent and copy-rights be obtained ? 
What are the penalties for the violation of patent and copy-rights ? 

^th Clause.— What power is conferred by the ninth clause ? 

lOth Clause. — What powers are conferred by the tenth clause ? 
What is piracy ? What is understood by the " high seas ?" 



UNITED STATES. 83 

cies* and felonies committed on the high eeas,*' 
and offences against the law of nations. 

Eleventh Clause. — To declare war, grant let- 

Tenth Clause. 

a Piracy^ whether committed by a single individual, or 
by a whole ship's crew, is robbery on the high seas. It is 
the same crime which, when committed on the land, is 
denominated robbery. Piracy is punished by all nations. 
But if a foreigner acts under the sanction of a national 
commission, his acts are not denominated piracy. In this 
case the government which sanctions his acts is responsi- 
ble for the wrong, and not the individual. Thus the Bar- 
bary States are now regarded as lawful powers, and not 
pirates. 

b The term ''high seas" means all the waters of the 
ocean below the boundaries of low water mark, where 
the tide ebbs and flows, although in a roadstead or bay, 
within the limits of one of the States or of a foreign gov- 
ernment. Between high water mark and low water mark, 
the courts of common law and of admiralty hold alternate 
jurisdiction. 

Eleventh Clause. 

In most governments the power to declare war is vest- 
ed in the Executive, particularly in monarchies, where 
it is generally exercised by the sovereign. It is some- 
times said that the power of the King of England to make 
war is nugatory, while the people have the right of refu- 
sing the supplies for carrying it on. But it may be said, 
with much more truth, that the right of the people to deny 
the supplies is nugatory, when the crown has involved 
them in a predicament that makes consent a matter of 
necessity. But the people of this Republic, jealous of so 

Wth Clause. — What powers are conferred by the eleventh 
clause .'' In most governments, Avhere is the power to declare war 
vested .' What is said of the power of the King of England to make 
war ? What are "letters of marque and reprisal?'' 



84 CONSTITUTION OF THE 

ters of marque and reprisal,* and make rules con- 
cerning captures on land and water. 

Twelfth Clause. — To raise and support ar- 
mies ; but no appropriation of money for that use 
shall be for a longer term than two years. 

Thirteenth Clause. — To provide and maintain 
a navy. 



great a power vested in one man, who might so easily 
abuse it, have given it to Congress, who represent the 
people, and who, it is presumed, will not engage in war 
needlessly, without the sanction of public opinion. 

^ Letters of marque and reprisal are commissions to 
seize the persons and property of the members of a nation 
which has committed some injury and refuses to make 
satisfaction. 

T\oelfth Clause. 

It is the policy of the government to keep the standing 
army no larger than is necessary to keep up the forts on 
the seaboard and frontiers, and awe the Indians. The 
standing army is within the immediate control of the peo- 
ple^ as it can be destroyed whenever their representatives 
refuse appropriations for its subsistence. 

Thirteenth Clause. 

The United States have long had a large and respecta- 
ble navy. A large navy is more necessary for the pro- 
tection of our extensive commerce and the defence of the 
Republic than a large standing army; and if we are ever 
engaged in war with any European nation, our commerce 
will be the first object of attack. We should be able to 

\2th Claus'i. — What power is conferred by the twelfth clause? 
How may our standhig army be broken up ? 

\3fh Clause.— Whdit power is conferred by the thirteenth clause ? 
What is said of the importance of a navy .? 



UNITED STATES. 85 

Fourteenth Clause. — To make rules for the 
oovernment and regulation of the land and naval 

forces. 

Fifteenth Clause. — To provide for calling 
forth the militia to execute the laws of the Union, 
suppress insurrections, and repel invasions. 

meet the enemy abroad, and not allow him to come with- 
in our territories. 

History^ shows us that a large standing army, in the de- 
mocracies of the old world, has often been converted to 
dangerous uses in times of civil discord. But while the 
navy is our strongest bulwark of defence, it is under so 
wise a supervision, that there is no danger of its being 
used as an engine of domestic oppression. 

Fourteenth Clause. 

The Departments of War and Navy have been estab- 
lished for the superintendence of the land and naval for- 
ces, and rules and regulations for their government and 
discipline have been adopted by Congress. 

Fifteenth and Sixteenth Clauses* 

Under these two clauses, and a subsequent one, that the 
President shall be commander-in-chief of the militia when 
called into actual service, several questions have arisen : 

1st. Who is to determine when the militia are to be 
called out, the Governors of the States or the President *? 

2d. Can the President place the militia under the com- 
mand of any one but himself? 

3d. Can he detach ^«r^5 of the militia corps'? 

It has been decided by the Supreme Court of the United 
States that the authority to decide when the militia are to 

\Ath Clause. — What power is conferred by the fourteenth 
clause ? 
15?^ andl6th Clauses. — What powers arc oonfcrredby the fif- 

8 



86 CONSTITUTION OF THE 

Sixteenth Clause. — To provide for organi- 
zing, arming, and disciplining the militia, and for 
governing such part of them as may be employed 
in the service of the United States, reserving to 
the States respectively the appointment of the 
officers, and the authority of training the militia 
according to the discipline prescribed by Con- 
gress. 

Seventeenth Clause. — To exercise exclusive 
legislation, in all cases whatsoever, over such 

be called out belongs exclusively to the President. The 
power to govern the militia, when in the service of the 
United States, is an exclusive one ; but the militia are 
not to be considered in that service until they are mus- 
tered at the place of rendezvous, and until that time their 
respective States retain jurisdiction over them, concur- 
rent with the jurisdiction of the general government. 

A State may call forth its own militia, when not in the 
service of the United States, to suppress insurrections 
within, or repel invasions from its own borders, or to 
assist the United States. 

Upon the two remaining questions, the Supreme Court 
has given no decision. The general opinion, however, 
seems to be in favor of the power claimed for the Presi- 
dent. The Constitution gives to the President the com- 
mand of the militia " when in the actual service of the 
United States ;" but the command would be almost a nul- 
lity without the implied power of delegating to others 
either a part or the whole of his authority, or of detaching 
parts of the militia when occasion demanded it. 



teenth and sixteenth clauses ? What questions have arisen under 
these clauses ? How has the first question been decided ^ When 
are the miUtia considered in the service of the United States ? 
What is said of the two remaining questions ? 



UNITED STATES. 87 

district (not exceeding ten miles square) as may, 
by cession of particular States, and the acceptance 
of Congress, become the seat of the government 
of the United States, and to exercise like authority 
over all places purchased by the consent of the 
Legislature of the State in which the same shall 
be, for the erection of forts, magazines, arsenals, 
dock-yards, and other needful buildings. And, 
Eighteenth Clause. — To make all laws which 

Seventeenth Clause. 

Congress have accepted a grant from Virginia and 
Maryland, often miles square, for the seat of government, 
which is the present District of Columbia. Over this 
district, Congress have exclusive jurisdiction, and also 
over other places purchased for the uses of the govern- 
ment. The inhabitants of those places cease to be inhabi- 
tants of the States, and can no longer exercise any politi- 
cal rights under the laws of the State. But the States have 
commonly reserved the right of criminal jurisdiction 
within the limits of ceded places, as this right may be 
exercised consistently with the jurisdiction of the general 
government. 

Eighteenth Clause, 

This clause has given rise to much discussion and 
great diversity of sentiment. The clause gives to Con- 
gress the power " to make all laws which shall be neces- 
sary and proper" for carrying into execution certain 
other specified powers. A question arises, What laws 
shall be deemed necessary and proper for these purposes 1 

\7th Clause. — What powers are conferred by the seventeenth 
clause ? What district has been ceded to Congress ^. W^hat is the 
extent of the jurisdiction of Congress over all ceded places ? 



88 CONSTITUTION OF THE 

shall be necessary and proper for carrying into 
execution the foregoing powers, and all other 



A national bank has by some been thought necessary 
to the proper administration and regulation of the finan- 
cial concerns of the nation. And if it be necessary for 
this purpose, argue its advocates, its establishment by 
Congress cannot be unconstitutional. On the other hand, 
some of its opponents admit the utility of a national bank, 
but deny its constitutionality, on the grounds that Con- 
gress cannot exercise any powers not expressly granted, 
and that if the exercise of such implied powers were ad- 
mitted, there v^ould be no limits to the powers of the gene- 
ral government. Others, however, deny its constitation- 
ality on the ground that it is an unnecessary institution 
in a financial point of view, and that it is pregnant with 
danger, owing to its liability to be converted to political 
purposes. 

A national bank was incorporated in 1791, although 
with much opposition. It received the sanction of Wash- 
ington, then President of the United States, and the weight 
of his favorable judgment. The Secretary of State and 
the Attorney General (JelFerson and Randolph) denied 
its constitutionality, while the Secretaries of the Trea- 
sury and War (Hamilton and Knox) agreed with the 
majorities in Congress in its favor. 

In 1811 the charter of the bank expired, and a majority 
in Congress rejected a bill for its re-charter. In 1816, the 
currency of the country having become in a very depre- 
ciated condition, a new national bank was chartered with 
a much larger capital than the old one. The efiect of 
the establishment of the bank was to revive credit, and 
restore a healthy action to the money market. In 1832 a 
bill for the re-charter of the bank (the charter of which 
would expire in 1836) passed both houses of Congress, 



\Qth Clause. — What general powers are conferred by the eigh- 
teenth clause i What important question has arisen under this 
clause ^ What are the arguments for and against the constitution- 
ality of a national bank? When was a national bank first iocor- 



UNITED STATES. 89 

powers vested by this Constitution in the govern- 
ment of the United States, or in any department 
or officer thereof. 



SECTION IX. 

Of Restrictions upon the Power of Congress. 

First Clause. — The migration or importation 

but was rejected by the executive veto of President 
Jackson. 

The Supreme Court has decided — 

1st. That Congress has the power to incorporate a 
national bank. 

2d. That there is nothing in the Constitution which 
excludes incidental or implied powers ; and, 

3d. That if the means proposed for the accomplishment 
of a constituiional object are adapted to the end, and not 
prohibited, they may be constitutionally employed. 

The constitutionality of a national bank is therefore 
settled as far as it can be by the decision of the highest 
judicial tribunal in the Union. Its expediency may be 
questioned, but its validity is established while the deci- 
sions of the Supreme Court remain unimpaired and the 
Constitution unviolated. 

Another incidental poicer claimed and exercised by the 
government is to create a priority of payment in their fa- 
vor in case of the death or insolvency of the debtor. 
Where a company or an individual is a debtor to Con- 
gress, and becomes insolvent, the claims of the United 
States must be liquidated before those of any other 
creditor. 

porated, and what has been its history ? What have been the de- 
cisions of the Supreme Court upon the subject ? What other inci- 
dental power is claimed by Congress ? 

8* 



90 CONSTITUTION OF THE 

of such persons as any of the States now existing 
shall think proper to admit, shall not be prohibit- 
ed by the Congress prior to the year one thou- 
sand eight hundred and eight ; but a tax or duty 
may be imposed on such importation, not exceed- 
ing ten dollars for each person. 

Seco7id Clause. — The privilege of the writ of 
habeas corpus,"^ shall not be suspended, unless 

Section dtli. — First Clause. 

The persons here spoken of were slaves, and by this 
clause their introduction was admitted until 1808. In 
1815 the slave trade was prohibited under severe penal- 
ties. Congress have since declared the slave trade to be 
piracy, and that if a citizen of the United States be en- 
gaged in it, he shall be adjudged a pirate, and on convic- 
tion suffer death. The Supreme Court of the United 
States, however, have decided that the slave trade is not 
piracy by the universal law of nations, nor except so far 
as it has been made so by the treaties or statutes of the na- 
tion to which the party belonged. The slave trade has 
been abolished by the United States, and by all European 
nations, and there is not a flag of any European power 
that can now legally cover this traffic north of the equa- 
tor. Vessels, of whatever nation, engaged in the slave 
trade, are now liable to seizure and confiscation. 

Second Clause. 

a The ivrit of habeas corpus is a judicial writ, granta- 
ble by any court of record, or judge thereof, and com- 

Sec. 9th.— Isi C latcse. —\Yh?it is the first clause of section ninth ? 
Who were the " persons" here spoken of.'' What is the pennlty 
for engaging in the slave trade ^ What have the Supreme Court 
decided upon the subject ? How is the slave trade considered by 
other nations .-* 



UNITED STATES. 91 

when, in cases of rebellion or invasion, the pub- 
lic safety may require it. 

Tliird Clause. — No bill of attainder,^ or ex 
post facto latOj^ shall be passed. 



mands the sheriff, or other officer, named in it, to have or 
take the body, and bring it before said judge or court. 

The object of the writ is, by bringing a person, confined 
by any means whatever, before a competent authority, to 
have his confinement, and the cause of it, investigated j 
and, if it be not strictly legal, to discharge him. 

The writ is grantable upon the application of any per- 
son whomsoever, on behalf of the prisoner. 

The only attempt to suspend the writ of habeas corpus, 
was made on the occasion of Burr's conspiracy : but it 
failed in the House of RepresentativeSj by a large ma- 
jority. 

Third Clause, 

^ A bill of attainder, is a special act of the Legislature, 
inflicting capital punishments upon persons supposed to 
be guilty of high offences, such, as treason and felony, 
without any conviction in the ordinary course of judicial 
proceedings. If it inflict a milder punishment, it is called 
a bill of pains and penalties. 

b An ex post facto law, is a retrospective criminal law. 
A retrospective law, is one which acts upon things al- 
ready done, and not merely upon those which are to be 
done. 

An ex post facto laio makes something criminal which 
was not criminal when done. Thus, if the Legislature 
should pass an act, declaring that all persons who had 

2d Clause.— Wli^n only may the writ of " habeas corpus" be 
suspended? What is the writ of " habeas corpus?" Has the 
writ ever been suspended in this country ? 

2d C/oMse.— What is the third clause ? What is a " bill of attain* 
der r" What is an " ex post facto law ?"' 



92 CONSTITUTION OF THE 

Fourth Clause. — No capitation,* or other di- 
rect tax, shall be laid, unless in proportion to the 
census or enumeration herein before directed to 
be taken. 

Fifth Clause. — No tax or duty shall be laid 
on articles exported from any State. 

not attended church last year, should be imprisoned, that 
law would be unconstitutional^ because, ex post facto. 

But if the Legislature should pass an act, that those 
who had attended militia duty last year, should be excused 
from paying taxes, and those who had not, should not be 
excused, such a law would be retrospective ^ but not ex 
post facto, because, not criminal. An ex post facto law 
makes past acts criminal^ which were not so before. 

Fourth Clause. 

^ The term capitation^ here, signifies a direct tax upon 
individuals. Such tax cannot be levied by Congress 
upon one portion of the people and not upon another; 
but all taxes must be uniform among the States. 

If a national tax were to be levied. Congress would 
apportion it among the several States, according to the 
number of representatives which they were allowed to 
send to Congress; and each State would apportion its 
tax among its citizens, according to the property possess- 
ed by each. 

Thus, Congress would apportion the tax among the 
States, according to numbers ; and the States among the 
citizens, according to property. 

Fifth Clause. 

Duties upon exports can at no time be advantageous 

4:th Clause. — What is the fourth clause.'' What does the terra 
" capitation" here signify .^ How would a national tax be levied .? 

hth C/a7/se.— What is the fifth clause f Are duties on exports 
ever 5idvantageous to a nation ? 



UNITED STATES. 93 

Sixth Clause, — No preference shall be given, 
by any regulation of commerce or revenue, to the 
ports of one State over those of another ; nor shall 
vessels bound to or from one State, be obliged to 
enter, clear, or pay duties in another. 

Seventh Clause, — No money shall be drawn 
from the Treasury, but in consequence of ap- 
propriations made by law ; and a regular state- 
ment and account of the receipts and expenditures 
of all public money, shall be published from time 
to time. 

to a nation ; for it is by its exports only that one nation 
is enabled to procure the money or produce of other na- 
tions. 

Kings, sometimes, resort to duties of this kind, to in- 
crease their revenue ; but T\-here the people are the rulers, 
they will not thus oppress themselves. 

Sixth CloAtse. 

If vessels of one State were obliged to pay duties in 
another, the States would be in the relation of foreign 
nations to each other. A diversity of interests would 
soon arise, and the unity of government would be de- 
stroyed. 

Seventh Clause. 

The piiblic moneys are thus placed beyond the reach of 
the Executive, and the people who bear the burdens of 
taxation, have, through their representatives, the sole 
power of appropriating their own revenue. 

^th Clause.— V7\mi is the sixth clause ? Why its propriety ? 
7th Clause.— Uo^s only may money be dra^vn from the TreaB- 



94 CONSTITUTION OF THE 

Eighth Clause. — No title of nobility shall be 
granted by the United States ; and no person, 
holding any office of profit or trust under them, 
shall, without the consent of the Congress, accept 
of any present, emolument, office, or title of any 
kind whatever, from any king, prince, or foreign 
state. 

SECTION X. 

Of Restrictions wpon the Power of the States, 

First Clause. — No State shall enter into any 
treaty, alliance, or confederation ; grant letters of 

By the regulations of the Treasury Department, the 
greatest fidelity and accuracy are ensured in the disburse- 
ment of the public moneys. The people have always an 
opportunity of knowing how their money is disposed of. 

Eighth Clause, 

Titles of nobility, and the odious aristocratical distinc- 
tions found in most governments, are utterly inconsistent 
with our republican manners and institutions. This 
clause, also, guards against the possibility of public offi- 
cers being bribed to betray the interests of their country. 

Section Wth. — First Claiise. 

This clause divests the States of the most important 
attributes of Tiational sovereignty. It will be seen in the 

Sth Clause. — What is the law with reference to titles of nobility, 
and presents from foreign states ? 
Sec. 10th.— Is^ C/ai^e.— What restrictions are placed upon the 



tJNlTED STATES. 95 

marque and reprisal ; coin money ; emit bills of 
credit;* make any thing but gold and silver coin 
a tender in payment of debts ; pass any bill of 
attainder, ex post facto law, or law impairing the 
obligation of contracts;^ or grant any title of no- 
bility. 

end, that they retain no attributes of national sovereignty, 
but are sovereign in a municipal capacity only. The 
terms "letters of marque and reprisal," " bill of attain- 
der," and " ex post facto law," have already been defined. 

^ Bills of credit, within the meaning of the Constitu- 
tion, w^hich prohibits their emission by the States, are 
promissory notes, or bills, issued exclusively on the credit 
of the State, and designed to circulate as money, and for 
the payment of which, the faith of the State only is 
pledged. 

The prohibition does not, therefore, apply to the notes 
of a State bank, drawn on the credit of a particular fund, 
set apart for the purpose. 

b A contract, is an agreement to do or not to do a cer- 
tain thing. If two individuals have formed a contract 
w^hich is sanctioned by the law^s of the State, and the ful- 
filment of which could be legally exacted by either of the 
contracting parties, then the State cannot declare such 
contract void, or release either party from his obligation. 

Nor can a State revoke what it has once granted away. 
But w^hen the law itself, under w^hich the contract w^as 
made, provides for the dissolution of the contract, in any 
prescribed mode, the parties are presumed to have acted 
subject to such contingency ; and w^hen the contingency 
happens, the obligation may be declared void, either in 
whole or in part, as the original law, (under which the 
contract w^as made,) provided. 

The obligation consists in the law applicable to the 

power of the States, by the first clause of section tenth .' What 
are " bills of credit .'" What is a " contract ?" In what does the 
*' obligation" consist .' 



96 CONSTITUTION OF THE 

Second Clause. — No state shall, without the con- 
sent of the Congress, lay any imposts or duties on 
imports or exports, except what may be absolutely 
necessary for executing its inspection laws ; and 
the nett produce of all duties and imposts, laid by 
any State on imports or exports, shall be for the use 
of the Treasury of the United States ; and all such 
laws shall be subject to the revision and control 
of the Congress. 

Third Clause. — No State shall, without the 
consent of the Congress, lay any duty of tonnage,-'^ 

contract. If, then, the law which permitted the contract, 
permit the lawgiver, at any time, to declare it void, the 
contract is made subject to such contingency. 

Second Clause. 

By this clause, the States can obtain no revenue from 
commerce by way of duties, which power is another attri- 
bute of sovereignty, of which the States are divested. 

The States have inspection laws, under the authority 
of which many domestic articles are inspected before they 
are subject to use or exportation. The States are allowed 
to lay duties upon these articles, sufficient to pay for their 
inspection. The object of inspection laws, is to improve 
the quality of articles produced in the country. 

Third Clause. 

^ Tonnage duties are taxes laid on vessels, at so much 
^er ton. -The States cannot keep troops or ships of war, 

2d Clause— V^hdii restrictions are imposed by the second 
clause ? What are inspection laws, and what is their object ? 

3d Clause— Whsii restrictions are imposed by the third clause ? 
What arc " tonnage duties ?" 



UNITED STATES. 97 

keep troops or ships of war in time of peace, en- 
ter into any agreement or compact with another 
State, or with a foreign power, or engage in war, 
unless actually invaded, or in such imminent dan- 
ger as will not admit of delay. 

ARTICLE 11. 
Of the Executive. 

SECTION I. 

First Clause. — The Executive^ power, shall 
be vested in a President of the United States of 
America, He shall hold his office during the 

in time of peace, for these are attributes of national sove- 
reignty. If this power existed in both the general and 
State governments, it would constitute them separate na- 
tions ; which is wholly at variance with the object of the 
Constitution. 

First Clause, 

* Executive, is that which relates to the execution of the 
laws. Thus, the chief officer of the government, whether 
he be called King, President, or Governor, is denomi- 
nated the Executive ; for, on him, in most cases, the Con- 
stitution devolves the duty of executing the laics. 

As it is the duty of the Executive to execute the laws, 
which often requires great decision, secrecy, and despatch, 

Ist Claicse.—ln whom is the Executive power vested ^ How 
long does the President hold his office ? What i^ the meaning of 

9 



98 CONSTITUTION OF THE 

term of four years ; and, together with the Vice- 
President, chosen for the same time, be elected as 
follows : — 

Second Clause. — Each State shall appoint, in 
such manner as the Legislature thereof may di- 
rect, a number of electors, equal to the whole 
number of Senators and Representatives to which 
the State may be entitled in the Congress ; but no 

this power is better vested in one man than in several 
individuals. 

The Executive being elected for a definite term of 
years, if his administration be odious, he is, at the expira- 
tion of his term of office, held amenable to the bar of pub- 
lic opinion, and another person may be elected to fill his 
place. 

It will, hereafter, be seen, that the Executive is made 
directly responsible for his acts, to the representatives of 
the people. So great is the difference between the Exe- 
cutive branches of many of the governments of Europe 
and that of the United States. 

It is a principle of the English law, that '^ the king can 
do no wrong." His acts are placed above inquiry, and 
above accountability. If the king err or offend, his min- 
isters are held responsible. 

Second Clause. 

As the electors are to be appointed in such manner as 
the Legislature may direct, different States have adopted 
different modes. In some States, the elect-ors are chosen 
by the Legislature itself; in others, by the people. 

the term " executive ?" Why might not the Executive power be 
placed in the hands of many individuals .'' To whom is the Execu- 
tive responsible ? How is it with the Executive of the English 
government ? 
td C/aM««,-^How are the President and Vice Prejiident elected? 



UNITED STATES. 



99 



Senator or Representative, or person holding an 
office of trust or profit, under the United States, 
shall be appointed an elector.* 

(i2th Amendment to the Constitution.) — The 
electors shall meet in their respective States, and 
vote by ballot, for President and Vice-President, 
one of whom, at least, shall not be an inhabitant 
of the same State with themselves. 

They shall name, in their ballots, the person 
voted for as President, and in distinct ballots, the 
person voted for as Vice-President; and they 
shall make distinct lists of all persons voted for as 
President, and of ail persons voted for as Vice- 
President, and of the number of votes for each ; 
which lists they shall sign and certify, and trans- 
mit, sealed, to the seat of government of the 
United States, directed to the President of the 
Senate. 

The President of the Senate shall, in the pres- 
ence of the Senate and House of Representatives, 
open all the certificates, and the votes shall then 
be counted ; the person having the greatest num- 
ber of votes for President, shall be President, if 
such number be a majority of the whole number 
of electors appointed ; and if no person have such 



* The next clause in the Constitution, was abrogated 
in the year 1801, and the above amendment introduced. 



lOD CONSTITUTION OF THB 

majority, then, from the persons having the high- 
est numbers, not exceeding three, on the list of 
those voted for as President, the House of Repre- 
sentatives shall choose, immediately, by ballot, 
the President. 

But, in choosing the President, the votes shall 
be taken by States, the representation from each 
State having one vote; a quorum for this pur- 
pose, shall consist of a m.em.ber or members from 
two thirds of the States, and a majority of all the 
States shall be necessary to a choice. 

And if the House of Representatives shall not 
choose a President, whenever the right of choice 
shall devolve upon them, before the fourth day of 
March next following, then the Vice-President 
shall act as President, as in the case of the death 
or other constitutional disability of the President. 

The person having the greatest number of 
votes as Vice-President, shall be the Vice-Presi- 
dent, if such number be a majority of the whole 
number of electors appointed ; and if no person 
have a majority, then, from the two highest num- 
bers on the list, the Senate shall choose the Vice- 
President : a quorum for the purpose, shall con- 
sist of two thirds of the whole number of Sena- 
tors, and a majority of the whole number shall 
be necessary to a choice. 

But no person constitutionally ineligible to the 



rNITED STATES. 101 

office of President, shall be eligible to that of 
Vice-President of the United States. 

Third Clause. — The Congress may deter- 
mine the time of choosing the electors, and the 
day on which they shall give their votes ; which 
day shall be the same throughout the United 
States. 

Fourth Clause. — No person, except a natural 
born citizen, or a citizen of the United States at 

Third Clause. 

As regards the time of choosing the electors, Congress 
have only enacted that the States shall choose their elec- 
tors within the thirty-four days preceding the first Wed- 
nesday in December. 

The consequence is, that within that time, the elections 
are still made at difierent periods. It would, doubtless, 
be better if the elections were held by the different States 
on the same days. As it now is, those which are held 
last, are liable to be more or less influenced by those 
which are held first, upon the principle of a common de- 
sire in human nature to be on the strong side. 

The electors meet in their respective States, at a place 
appointed by the Legislature thereof, on the first Wed- 
nesday in December, in every fourth year succeeding the 
last election, and vote by ballot for President and Vice- 
President. 

Fourth Clause, 
Most of the Presidents heretofore elected, have been 

Zd Clause. — Who determines the time of choosing the electors.^ 
Is the day of choosing the electors the same throughout the States ^ 
What objection is there to their present mode of election? On 
what day do the electors give tlieir votes I 

ith CZat*««.— What qualifications are required for the office of 

9* 



102 CONSTITUTION OF THE 

the time of the adoption of this Constitution, shall 
be eligible to the office of President ; neither shall 
any person be eligible to that office who shall not 
have attained to the age of thirty-five years, and 
been fourteen years a resident within the United 
States. 

Fifth Clause. — In case of the removal of the 
President from office, or of his death, resignation, 
or inability to discharge the powers and duties of 
the said office, the same shall devolve on the Vice- 
President ; and the Congress may, by law, pro- 



more than sixty years of age. The age of thirty-five is 
young enough. 

It is not required that the person elected President, 
should have been within the United States during the 
whole period of fourteen years preceding his election ; 
but his permanent domicil must be there, unless he reside 
abroad on business of the government. 

A public officer, residing abroad in pursuance of his 
^uty, is still considered a resident citizen of the United 
States, so far as his political rights are affected. 



Fyth Clause. 

Congress have provided, that, in case of the removal, 
death, resignation, or inability of both the President and 
Vice-President, the President pro tern, of the Senate, and 

President 1 What has been the age of most of the Presidents, 
when elected ^ Must the person elected President, have been 
within the .United States during the whole period of the fourteen 
years preceding his election ? 

bth Clause. — Who succeeds the President, in case of his re- 
moval by death or otherwise ? What provisions have Congres* 



UNITED STATES. 103 

vide for the case of removal, death, resignation, 
or inability both of the President and Vice-Presi- 
dent, declaring what officer shall then act as 
President ; and such officer shall act accordingly, 
until the disability be removed, or a President 
shall be elected. 

Sixth Clause. — The President shall, at stated 
times, receive, for his services, a compensation, 
which shall neither be increased nor diminished 
during the period for which he shall have been 
elected, and he shall not receive within that pe- 
riod any other emolument from the United States, 
or any of them. 



in case there shall be no such President of the Senate, 
then the Speaker of the House of Representatives, shall 
act as President until the disability be removed or the 
vacancy filled. 

In case of a non-election of President and Vice-Presi- 
dent, at the proper period, Congress have declared that 
there shall immediately be held a new election. 



Sixth Clause. 

The salary of the President is twenty-five thousand 
dollars per annum, and that of the Vice-President, five 
thousand dollars. 



made for the case of the removal of both President and Vicc-Prcp- 
ident? If there be no President of the Senate .' In case of a non- 
•lection of both President and Vice-President .' 

6rA Clause. — What provision is made relative to the compensar 
tion of th» President ? What is his salary ? 



104 CONSTITUTION OF THE 

Seventh Clause. — Before he enters on the ex- 
ecution of his office, he shall take the following 
oath or affirmation : — 

" I do solemnly swear, (or affirm,) that I will 
faithfully execute the office of President of the 
United States, and will, to the best of my ability, 
preserve, protect, and defend the Constitution of 
the United States." 



SECTION II. 

First Clause. — The President shall be com- 
mander-in-chief of the army and navy of the 
United States, and of the militia of the several 
States, when called into the actual service of the 
United States. 

He may require the opinion, in writing, of the 
principal officer in each of the Executive Depart- 

Sedion 2d. — First Clause. 

The opinions of the subordinate Executive officers, are 
often required in matters pertaining to their respective 
departments. As the President cannot have the entire 
management of all the Executive departments, a general 
supervision over them requires that he should iDe allowed 
to avail himself of the opinions of those to whom these 
departments are more particularly intrusted. 



7th Clause.— Wh&t oath is required of th« President, b«fort h* 
«Dter8 upon the duties of bis office i 



ITNITED STATES. 105 

ments, upon any subject relating to the duties of 
their respective offices, and he shall have power 
to grant reprieves and pardons for offences against 
the United States, except in cases of impeach- 
ment. 

Second Clause. — He shall have power, by 

Second Clause. 

Relative to the power of making treaties, a question of 
the following nature has arisen : — 

If a treaty be ratified by the President and Senate, and 
a law be required to carry it into execution, may the 
House of Representativ^es withhold such law 1 

The House of Representatives once declared, that 
when a treaty depended, for the execution of any of its 
stipulations, on an act of Congress, it was the right and 
duty of the house to deliberate on the expediency of car- 
rying such treaty into effect. 

The House of Representatives, however, have subse- 
quently decided that the sole power over treaties, rests 
with the Senate and President. This appears^ now, to 
be the prevailing opinion. 

The Constitution has made treaties, when properly 
ratified, the supreme law of the land, and as such, they 
are binding upon the whole nation, and upon Congress 
also. 

As nations cannot treat together immediateli/, they must 
hold their conferences by means of delegates, or pMic 
ministers. 

A public minister is one who is chained with the care 
of public affairs at a foreign court. Of these, there are 
several orders : — 

1st. An ambassador is one who represents the govern- 
ment, and is entitled to act for it upon all occasions. 

by this clause? What exception to his power of pardoning? 
Why should the President have the power of requiring the -written 
opinions of the heads of departments ? 
Sec. 2d.— U< C^i«e.— What power* are vested in tlie Presideatf 



106 CONSTITUTION OF THE 

and with the advice and consent of the Senate, to 
make treaties, provided two thirds of the Senators 
present concur : and he shall nominate, and by 
and with the advice and consent of the Senate, 
shall appoint ambassadors, other public ministers, 
and consuls, judges of the Supreme Court, and 
all other officers of the United States, v/hose ap- 
pointments are not herein otherwise provided for, 

2d. An eniwy is a minister who is sent for a particular 
purpose — as, to adjust a special treaty, or arrange dis- 
puted boundaries. There are envoys ordinary^ and en- 
voys extraordinary or 2^i(^^^Wote7itiary. The former, as 
the term signifies, are invested with merely the ordinary 
powers of an envo)^ ; the latter have full power to act as 
they deem expedient. 

3d. Ministers resident^ or cliarge d^ affaires^ are those 
who are charged with the ordinary affairs of a nation at 
a foreign court. 

To each of the above offices, is attached a secretary of 
legation^ who performs the duties of a secretary, and is 
frequently left in charge of affairs when a minister is 
recalled. 

Consuls are commercial agents^ appointed to reside in the 
seaports of foreign countries, with a commission to watch 
over the commercial rights and privileges of the nation 
deputing them. 

As the Constitution said nothing about removals from 
office, it has been a question, whether the power of re- 
moval is vested in the President alone^ or in the President 
and Senate jointly. In 1789, the question came before 
Congress, and, after an animated debate, the power of the 
President was affirmed. This decision of the house has 
long been sanctioned by public opinion. 

2d Clause. — In whom is vested the power of making treaties "i 
What officers are appointed by the President and Senate .' What 
question has arisen relative to the treaty-making power? Wbat 



UNITED STATES. 107 

and which shall be established by law ; but the 
Congress may, by law, vest the appointment of 
such inferiar officers as they think proper, in the 
President alone, and in the courts of law, or in 
the heads of departments. 

Tliird Clause. — The President shall have 
power to fill up all vacancies that may happen 
during the recess of the Senate, by granting com- 

Third Clause. 

Should the office of a foreign ambassador become va- 
cant during the recess of Congress, the President has 
power to fill the vacancy ; and the ambassador appointed 
would retain his office until the close of the next senato- 
rial term. Should the President nominate this officer to 
the Senate, and the Senate should reject him, the Presi- 
dent miofht, on the first day of the next recess, appoint 
him again, to fill the vacancy, and thus perpetuate the 
appointment. 

The only remedy against this abuse of executive privi- 
lege, lies in the power of Congress to withhold the appro- 
priations which are necessary to sustain the office. But 
the President cannot appoint a foreign ambassador, or 
other officer, during the recess of Congress, unless the 
vacancy happens duYmg that time. 



right over this power did the House of Representatives formerly 
claim ? How has the question been decided ? How extensive is 
the binding power of treaties.'' Wliat is a "public minister?'* 
An "ambassador?" An "envoy?" "Ministers resident," or 
"charge d'affaires?" A "secretary of legation?" What are 
*'consulsi'' In whom is vested the "power of removal" from 
.•ffice ? 
8d CtoKMu— What vacancies may the President alone supply ? 



108 CONSTITUTION OF THfl 

missions, which shall expire at the end of their 
next session. 



SECTION III, 

He shall, from time to time, give to the Con- 
gress, information of the state of the Union, and 



Section ^d. 

At the opening of each session, the President lays be- 
fore Congress a mcssage,^ exhibiting the operations of the 
government during the past year, which is accompanied 
with reports from the chief officers of government, illus- 
trating the condition and prospects of their several de- 
partments. The President also gives his views upon all 
the measures which, in his c pinion, ought to be acted 
upon by Congress. 

President Washington, and the elder Adams, met 
Congress in person, and delivered oral speeches, to which 
answers were returned in a similar manner. President 
Jefferson abolished the custom, and ever since a written 
message has been sent to Congress, and no answer re- 
turned. 

Congress frequently calls upon the President, and upon 
the officers of the different departments, for such docu- 
mentary facts as they may desire. 

The power to call an extra session of Congress, has 
been exercised on four different occasions : once by the 
elder Adams, twice by President Madison, and once by 
President Van Buren. 

How may the President perpetuate an appointment made by him ? 
What remedy against this abuse of Executive privilege .'' 

Sec. 3d. — \st Clause. — What duties are imposed on the Presi* 
dent by this section? In what manner is the required informa- 
tion presented to Congress ? May ambassadors be rejected, and 
by whom ? 



UNITED STATES. 109 

recommend to their consideration such measures 
as he shall judge necessary and expedient; he 
may, on extraordinary occasions, convene both 
houses, or either of them, and in case of disagree- 
ment between them, with respect to the time of 
adjournment, he may adjourn them to such time 
as he shall think proper ; 

He shall receive ambassadors and other public 
ministers; he shall take care that the laws be 
faithfully executed, and shall commission all the 
officers of the United States. 

SECTION IV. 

The President, Vice-President, and all civil 
officers of the United States, shall be removed 
from office on impeachment for, and conviction 
of, treason, bribery, or other high crimes and mis- 
demeanors. 



The power to receive ambassadors, includes also the 
power to reject and dismiss them. 



Sec. 4th. — For what crimes, and in what manner, may ciyil offi- 
'Cers of the United States be removed from office ? 



10 



110 CONSTITUTION OF THE 

ARTICLE III. 

Of the Judiciary. 

SECTION I. 

The Judicial power of the United States, shall 

Section \st.. 

The Constitution has left the organization of the Sii- 
preme Court, and the establishixi-ent of the inferior courts, 
to Congress. 

. Congress have organized a Supreme Court, by creating 
a Chief Justice and six Associate Justices, any four of 
whom make a quorum; and it holds one term annually, 
at the seat of government. 

The inferior courts organized by Congress, are the 
Circuit and the District Courts. iThe Circuit Court is 
composed of one Judge of the Supreme Court and the 
District Judge, except when the District Judge is inter- 
ested, when it may be held by the Circuit Judge. The 
number of circuits is equal to the number of the Supreme 
Judges. 

The Circuit Courts are composed of two or three dis- 
tricts, generally ; but some of the States have no Circuit 
Courts. Their want is supplied, by the grant of the 
powers of Circuit Courts to the District Courts. 

The District Court is composed of a single Judge, who 
holds annually four terms, and special courts at his dis- 
cretion. The United Stales are at present divided into 
thirty-three districts. 

The Supreme Court is the ultimate tribunal of appeal 
from the Circuit and District Courts, and from the courts 
of the several States. Its general powers are enumerated 
in the next two clauses. 

The Supreme Court is the national court of the United 
States; and its jurisdiction is coextensive with national 

Sec. 1st.— In what is the Judicial power ofthe United States vest- 
ed ? How long do the Judges retain their offices ? How has .the- 



UNITED STATES. Ill 

te vested in one Supreme Court, and in such infe- 
rior courts as Congress may, from time to time, 
ordain and establish. 

The Judges, both of the Supreme and inferior 
courts, shall hold their offices during good beha- 
vior, and shall, at stated times, receive for their 
services, a compensation, which shall not be di- 
minished during their continuance in office. 

SECTION II. 

First Clause. • — The Judicial power shall ex- 
tend to all cases'" in law and equity,'' arising under 

ohjeds, and independent of other branches of the govern- 
ment. The Constiaition and laws of the United St; tes 
are to bs construed and adjud;?ed of by the Supreme 
Court. It is also a sovereign arbiter between the States ; 
which is a sufticient answ^er to the theory that the States 
have the power to annul the laws of the Union. 

Although the Supreme Court is the ultimate tribunal 
in all c^ses, yet it is the judge, and not the lavgirer. Its 
duty is to say what the law is, and not to make it. Judi- 
cial'power as contradistinguished from the power of the 
laws, has no existence. Courts are the instrum^ents of 
the law, and can will nothing. 

Section 2d. — I^rst Clause. 

^ A case, as here contemplated, is a suit in law or 
equity, instituted according to the regular course of judi- 
cial proceedings. 

b Equity, considered as a legal term, is the correction 

Sopreme Court been organized ? What inferior courts have been 
created ? How are they organized .'' 
Sec. 2d,— Is? Clause. — To what several cases does the Judicial 



\VZ CONSTITUTION OF THE 

this Constitution, the laws of the United States, 
and treaties made, or which shall be made, under 
their authority; to all cases affecting ambassa- 
dors, other public ministers, and consuls ; to all 
cases of admiraUy and maritime jurisdiction p to 
controversies to which the United States shall be 
a party :^^ — 

To controversies between two or more States; 
between a State and citizens of another State ;«= be- 
ef that wherein the law, (by reason of its universality,) 
is deficient. Courts of law are those in which decisions 
are regulated by the known laws of the land ; and courts 
of equity take cognizance of those cases which either the 
law, on account of its deficiency, does not reach ; or, in 
which a strict adherence to the law would be attended by 
manifest injustice. 

* The admiralty and maritime jurisdiction of the Uni- 
ted States courts, embraces all civil and criminal cases 
where the offence was committed at sea, or on the coasts, 
out of the body of a county. 

b To enforce the rights of the United States, they have 
power to sue in their own courts. But neither can an in- 
dividual or a State bring a suit against the United States. 
It is inherent in the nature of the sovereignty of the gov- 
ernment not to be amenable to any private person, nor to 
any State. If the citizens are oppressed by the public 
officers, the remedy lies in the power of removing them ; 
or, if the oppression be in the exercise of unlawful and 
unconstitutional powers, the oppressors are amenable to 
the judicial tribunals of the country. 

« The eleventh amendment to the Constitution de- 
power extend .' What is a "case," as here contemplated.' What 
is " equity ,'" What do the " admiralty and maritime" jurisdiction 
of the United States courts embrace ? How are the rights of the 
United State* enforced against the States ? Why may not aii indi. 



UNITED STATES. 118 

tween citizens of different States ;^ between citi- 
zens ofthe same State, claiming lands under grants 
of different States ; and betAveen a State, or the citi- 
zens thereof, and foreign States, citizens, or sub- 
jects. 



Clares that the judicial poorer does not extend to any suit 
in law or equity prosecuted against a State by individu- 
als. This, however, does not apply to a " writ of error," 
which is not a suit against a State within the meaning of 
the Constitution; and the jurisdiction ofthe Supreme 
Court, in cases arising under the Constitution, laws, and 
treaties of the Union, may be exercised by a writ of er- 
ror brought upon the judgment of a State court. 

A suit is considered as brought against a State, when 
the State is on the record as a party, and is sued in its po- 
litical capacity. To constitute the State a party, it is not 
sufficient that it has an interest in the suit, or that its pow- 
ers and duties come incidentally in question. 

^ The question here is, who is a citizen of a State, and 
how does he change his citizenship 1: Every person who 
is a citizen of one State, and rem^oves into another with 
the intention of taking up his residence there, becomes 
in reality a citizen of the State where he resides ; and a 
native citizen of .one State never ceases to be a citizen 
thereof till he acquires a new citizenship elsewhere. 



Tidualor State bring a suit against the United States .'' What rem- 
edy, then, have the citizens against the oppression of public offi- 
cers ? What does the eleventh amendment to the Constitution de- 
clare ? In what case does this not apply ? When is a suit consid- 
*jred as brought against a State ? Who are citizens, and how do 
th€7 change their citizenship ? 



10^ 



114 CONSTITUTION OF THE 

Second Clause. — In all cases affecting ambas- 
sadors, other public ministers, and consuls, and 
those in which a State shall be a party, the Su- 
preme Court shall have original jurisdiction.* 
In all the other cases before mentioned, the Su- 
preme Court shall have appellate jurisdiction,^ 
both as to law and fact, with such exceptions and 
under such regulations as the Congress shall 
make. 

Second Clause. 

* Original jurisdiction is entire jurisdiction. It is 
where the Supreme Court takes especial cognizance of a 
case which has been before no other court. This juris- 
diction can be exercised only in the cases specified by the 
Constitution, and cannot be enlarged by Congress. But 
it has been a matter of dispute, which is not yet definitely 
settled, whether this original jurisdiction is exclusive ; — 
that is, whether it rnay not be exercised concurrently by 
the inferior United States courts. 

b Appellate jurisdiction is the power of re-examining, 
and reversing or affirming the decisions of other courts. 
The usual modes of exercising appellate jurisdiction, 
are : by Writ of Error — which removes nothing for re- 
examination but the law of the case ; and by Appeal — 
which removes a cause entirely, and subjects the facts 
as well as the lav/ to a review and retrial. 

It is the appellate jurisdiction which gives to the Su- 
preme Court its chief dignity and importance, and ren- 
ders it an object of constant attonticn and solicitude on 
the part of the governments of the several States. 

2d Clause. — In what casts has tiie Supreme Court original ju- 
risdiction ? In what cases lias it appellate jurisdiction ? What is 
"original jurisdiction?" What dispute has arisen upon this sub- 
ject? What is "appellate jurisdiction?" What are the usual 
modes of exercising appellate jurisdiction ? Which is the most 
frequently exercised by the Supreme Court, appellate or original 
jurisdiction ? 



UNITED STATES. 115 

Third Clause, — The trial of all crimes, ex- 
cept in cases of impeachment, shall be by jury; 
and such trial shall be held in the State where 
the said crimes shall have been committed ; but 
Avhen not committed within any State, the trial 
^hall be at such place or places as the Congress 
may, by law, have directed. 

Third Clause, 

In connection with this clause must be taken the fifth 
and sixth amendments to the Constitution, which will be 
found in their proper places. 

The right to a trial by jury is esteemed one of the most 
precious rights of freemen, as it enables the accused to 
appeal from the arbitrary judgment of either governments 
or individuals, to the disinterested verdicts of their equals. 

Before a person can be tried for a criminal offence, he 
must first be charged with the offenCe by a grand jury. 
This charge is in the form of an indictment. 

A grand jury is a number of men, not less than twelve 
nor more than twenty-three, selected from the people in 
the body of the county, to inquire into offences against the 
State. They are instructed by the court in the matters 
pertaining to their inquiries, and then withdraw to re- 
ceive indictments, which are preferred to them in the 
name of the State^ but at the suit of a private prosecutor. 
After an examination, such of the bills as are found cor- 
rect, are endorsed, '^ A true Bill," signed by the foreman ; 
and hence become ofiicial accusations, to be rebutted only 
by proof at the trial. These bills are called indictments. 

It is provided in the fifth amendment to the Constitu- 
tion, that no person shall be twice put in jeopardy of life 

Zd Clause. — What is the law regulating the trial of crimes? 
What preliminary steps are requisite before a person can be tried 
for a criminal offence t What is a *' grand jury ?" How often may 
a person be tried for the same criminal offence ? What is the 
meaning of the phrase, " No person shall be twice put in jeopardy 
of life or limb for the same <<ffence r" 



116 CONSTITUTION OF THE 



SECTION III. 

First Clause. — Treason against tlie United 
States, shall consist only in le.vying war against 
them, or in adhering to their enemies, giving 
them aid and comfort. 

Second Clause. — No person shall be convicted 
of treason, unless on the testimony of two wit- 
nesses to the same overt act, or on confession in 
open court. 

Third Clause. — The Congress shall have 
power to declare the punishment of treason ] but 

or limb for the same offence. The meaning iSj that no 
person shall be a second time tried for the same offence, 
where there ha.s been an actual verdict and judgment ren- 
dered in a former trial. But the accused may be tried a 
second time, when the jury have been dismissed for want 
of agreement, or where a new trial has been granted on 
account of some illegal proceedings, or for want of evi- 
dence. 

Section 3d. — First, Second, and Third Clauses, 

The punishment of treason in this country, is death by 
hanging. 

By corruption of blood, is meant the destruction of all 
inheritable qualities, so that no one can claim any prop- 

Sec. 3d. — Xst Clause. — In what does treason against the United 
States consist ? 

2c? Clause. — What is reqaisite to the convicfion of a person 
charged with treason ? 

Zd Clause.— V^\idX restriction upon the penalty for treason? 



UNITED STATES. 117 

no attainder of treason shall work corruption of 
blood, or forfeiture, except during the life of the 
person attainted, 

ARTICLE IV. 

Miscellaneous. 

SECTION I. 

Full faith and credit shall be given in each State, 
to the public acts, records, and judicial proceed- 
ings of every other State. And the Congress 
may, by general laws, prescribe the manner in 
which such acts, records, and proceedings shall 
be proved, and the effect thereof 



erty, or any right to the same, from a person attainted, 
or through him. In England, even the children of a per- 
son attainted cannot inherit his property, if they are 
obliged to trace their title through him. But these relics 
of feudal barbarism are prohibited by our Constitution. 

Section 1st. 

Foreign judgments in law are considered as prima fa- 
cie evidence, that is, are taken as true, until the contrary 
is proved. But domestic judgments, that is, the decisions 



What is the punishment of treason ? What is meant by " corrup- 
tion of blood ?" What is the Enghsh law upon thi? subject ? 

Sec. 1st.— What credit is given to the public acts, records, and 
judicial proceedings of the several States ? How are foreign 
judgments in law considered ? How domestic judgments I 



118 CONSTITUTION OF THE 



SECTION II. 

First Cliuse. — The citizens of each State- 
shall be entitled to all privileges and immunities 
of citizens in the several States. 

Second Clause. — A person charged in any 
'State, with treason, ft^lony, or other crime, who 
shall flee from justice, and be found in another 
State, '^••hall, on demand qf the Executive authority 
of the State from which he fled, be delivered up, 
to be removed to the State having jurisdiction of 
the crime. 

Third Clause. — No person held to service or 
labor in one State, under the law^s thereof, escap- 
ing into another, shall, in consequ;nce of any 
law or regulation therein, be discharged from 

of courts in the several States, are to be considered valid 
and conclusive law in every state in the Union, and can- 
not be denied in another State any more than in the State 
where they originated. 

Section 2d. — First, Second, and Third Clauses. 

The clause relative to persons held to service or labor,, 
refers to the slaves of the southern States who may take 
refuge in the non-slaveholding States. Slaves are to be 

Sec. 2(1. — \st Clause. — What riglitsare guaranliedto tlie citizens 
of each State by this clause ? 

2d Clclnse. — How arc criminals who flee from one Slate to an- 
other to be dehvered up I 

3d Clause. — What is the law relative to the escape ef slaves from. 



UNITED STATES. 119 

such service or labor, but shall be delivered up, 
on claim of the party to whom such service or 
labor may be due. 

SECTION III. 

Firs^t Clrmse. — New States may be admitted 
by the Congress into this Union; but no new 
State shall be formed or erected within the juris- 
diction of any other State, nor any State be formed 
by the junction of two or more States, or parts of 
States, w^ithout the consent of the Legislatures of 
the States concerned, as well as of the Congress. 

delivered up without a full trial, after a summary inves- 
tigation before a magistrate who shall think it probable 
that the circumstances charged are true. Such proof may- 
be either by arhdavic or oral testimony, and adduced by 
either the principal or his attorney. 

Section 3d. — F'irst Clause. 

The power to admit new States into the Union, in the 
manner provided by the Constitution, is a neiv principle 
in government. Under the old Confederation no provi- 
sion of this kind was made, for there was then no antici- 
pation of the rapid growth and prosperity of those wild 
regions, whose population and territory ha\^e sinee nearly 
doubled those of the original States. 

By this provision of the Constitution the United States 
open an asylum for all mankind, and make the whole 

one State to another .'' Is a full trial requisite before the surrender 
of a slave ? 

Sec. 3d. — 1st Clause — What is the law regulating the erection 
and admission of hew States ? Is the power to admit new States a 



120 CONSTITUTION OF THE 

Second Clause. — The Congress shall have 
power to dispose of and make needful rules and 
regulations respecting the territory or other prop- 
erty belonging to the United States ; and nothing 
in this Constitution shall be so construed as to 
prejudice any claims of the United States^ or of 
any particular State. 

SECTION IV. 

The United States shall guaranty to every 
State in this Union, a republican form of govern- 
ment, and shall protect each of them against in- 
vasion ; and on application of the Legislature, or 

world partners with themselves in an inheritance of lib- 
erty, power, and wealth. This benevolent principle has 
no example among nations. 

But the term used in the Constitution relative to the 
admission of new States is may, and not shall. Hence, it 
is not imperative upon the government of the United 
States to admit new States whenever they may demand it. 

Section 4ih. 

It was necessary for the United States to assume the 
defence of the several States, as the Constitution had al- 
ready taken from the latter the power to keep troops and 

long-established principle in government ? Is it imperative upon 
the general government to admit new States when the latter de- 
mand it ? • 

2d Clause. — ^What power has Congress over the territory and 
other property of the United States ? 

6bc. 4th.— What form of government, and what protection, are 



i 



UNITED STATES. 121 

of the Executive, (when the Legislature cannot 
te convened,) against domestic violence. 

ARTICLE V. 

Of Amendments. 

The Congress, whenever two thirds of both 
houses shall deem it necessary, shall propose 
amendments to this Constitution, or, on the appli- 
cation of the Legislatures of two thirds of the 
several States, shall call a^convention for propos- 
ing amendments, which in either case shall be 
valid, to all intents and purposes, as part of this 

ships of war, and consequently the power efficiently to 
suppress insurrections. 

Article bth. 

No amendments can be made except in the manner 
here pointed out ; but there are three limitations to the 
power of making amendments : — 

1st. That the clause in the Constitution prohibiting 
Congress from passing any law forbidding the introduc- 
tion of slaves prior to the year 1808, should not be repeal- 
ed. This restriction was introduced as a matter of com- 
promise between the northern and southern States. 

2d. That the mode of levying direct taxes should not 
be changed prior to the year 1808, The Constitution 
provided, that, in apportioning taxes among the States ac- 

guarantied to every State .' Why might not the defence of tho 
States have been left to themselves ? 

How may the Constitution be amended ? What are the several 
limitations.to the power of making amendments ? 

n 



122 CONSTITUTION OF THE 

Constitution, when ratified by the Legislatures of 
three fourths of the several States, or by conven- 
tions in three fourths thereof, as the one or the 
other mode of ratification may be proposed by the 
Congress ; provided that no amendment, which 
may be made prior to the year one thousand eight 
hundred and eight, shall in any manner affect the 
first and fourth clauses in the ninth section of the 
first article ; and that no State, without its con- 
sent, shall be deprived of its equal suffrage in the 
Senate. 

ARTICLE VI. 
First Clause. — All debts contracted, and en- 
cording to their population, three fifths of the slaves 
should b2 enumerated in the census of the population. 
Consequently, before the year 1808, the slaveholding 
States could not be taxed for more than three fifths of 
their slaves, although Congress should desire it. 

3d. That no State should be deprived, without its con- 
sent, of its equal representation in the Senate. The 
small States are represented in the Senate equally with 
the larger ones, and may always remain so, unless the 
smaller States themselves consent to a change. They 
are thus effectually and permanently protected against 
all encroachments from the larger States. 

Article 6th. — First Clause. 

During the struggle for independence, the United States 
contracted -engagements and incurred debts, which many 

Art. 6th.— l«t Clause.^Whai provision was made re«pectinff 



TJNITfiD STATES. 123 

ga^ements entered into, before the adoption of this 
Constitution, shall be as valid against the United 
States under this Constitution as under the Con- 
federation. 

Second Clause. — This Constitution, and the 
laws of the United States, which shall be made in 
pursuance thereof ; and all treaties made, or which 
shall be made, under the authority of the United 
States, shall be the supreme law of the land; and 
the j i e in every State shall be bound thereby, 
any thing in the Constitution or laws of any State 
to the contrary notwithstanding. 

persons were apprehensive might not be considered bind- 
ing upon the new government. But it is a law of na- 
tions, as well as a principle of- justice^ that a nation con- 
tinues bound by all its engagements, no matter what 
changes may be made in its government. In accordance 
with this rule, the Constitution has made all debts con- 
tracted, and engagements entered into, before the adop- 
tion of the Constitution, valid and binding against the 
United States. 

Second Clause. 

In consequence of the supremacy of the Constitution, 
as here set forth, whenever the constitution or the laws of 
any State come in contact with it, or in contact with the 
constitutional treaties or laws of the United States ; all 

the debts contracted before the adoption of the Constitution ? 
What is the general law of nations upon this point ^ 

2d Clause. — What constitute the supreme law of the land .' How 
are all judges bound to act, when the laws of a State come in col- 
lision with those of the Union ? 



124 CONSTITUTION OF THE 

Third Clause. — The Senators and Representa- 
tives before mentioned, and the members of the 
several State Legislatures, and all executive and 
judicial officers, both of the United States and of 
the several States, shall be bound, by oath or af- 
firmation, to support this Constitution ; but no re- 
ligious test*- shall ever be required as a qualifica- 
tion to any office or public trust under the United 
States. 

judges, whether of the State courts or of the United 
States courts, are bound to give eflfect to the Constitution, 
and to the acts of the general government, and to declare 
the State acts invalid, so far as they come in collision 
with them. 

All constitutional treaties and laws of the United 
States are as binding upon the several States as the Con- 
stitution itself. 

Third Clause, 

An oath of similar import is required in all civilized 
nations from the officers of government. 

* A test act is one which requires all public officers, be- 
fore they can enter upon their duties, to subscribe to cer- 
tain religious opinions, and perform certain religious 
acts. By the above clause this is expressly forbidden in 
the United States. But in most other governments some- 
thing of this kind is required. Thus, by the statutes of 
England, all civil and military officers are required to 
make a declaration against tra?isubsta7itiaiion, partake of 
the sacrament of the Lord's Supper, and obtain certifi- 

2d Clause. — By what oath are all legislative, executive, and judi- 
cial officers bound? How is it with regard to a religious tesf? 
What is a " test act ?" What religious test is required by the laws 
of England ? 



UNITED STATES. 125 



ARTICLE VII. 



The ratification of the conventions of nine 
States shall be sufficient for the establishment of 
this Constitution between the States so ratifying 
the same. 



cates of the same, before they can enter upon any such 
office. 

Article 1th, 

At the formation of the Constitution there were thir- 
teen States, nine of which ratified it immediately, three 
after the lapse of a few months, and the State of Rhode- 
Island not till more than a 3^ear afterward. Had not all 
the States ratified the Constitution, its authority would 
nave extended only over those ratifying the same. 

Art. 7th. — How many States were required to ratify the Consti- 
tution before it took effect ? How many States were there at the 
time of the formation of the Constitution ? Would the Constitution 
feave been binding upon any State which did net assent to i| f 



ir 



126 CONSTITUTION OF THB 



OF AMENDMENTS. 

When the Constitution was submitted to conventions 
of the people, called for that purpose, it met with violent 
opposition from manj^, and numerous objections were 
urged against it. The most important objections were 
those against the great power with which it invested the 
general government ; and the fear that the influence of 
the States would be greatly impaired, if not altogether 
destroyed, by the supremacy of the Union. 

The Constitution was, however, ratified by the requi- 
site number of States, and Congress, during their first 
session, proposed ten distinct articles, selected from those 
which had been suggested in the State conventions, 
which, having been ratified in the manner provided, are 
now a part of the Constitution. Two other amendments 
have since been added. 

The general design of the amendments was to secure 
certain rights to the States and people, beyond the possi- 
bility of encroachment by Congress; and to set a more 
definite limit to the powers of the general government. 



What were the most important objections urged against the Con- 
Btitation ? How many amendmems have been added to the Con- 
stitution ? What Was their general design ? 



-ti. 



UNITED STATES. 127 



AMENDMENTS. 



Article I. — Congress shall make no law 
respecting an establishment of religion, or pro- 
hibiting the free exercise thereof; or abridging 
the freedom of speech, or of the press; or the 
right of the people peaceably to assemble, and to 
petition the government for a redress of griev- 
ances. 

Article I. 

Although the imposition of any religious test had al- 
ready been prohibited by the Constitution, yet such was 
the solicitude of the people on this point, such their de- 
termination to preserve the utmost freedom of conscience, 
that it was deemed proper to deprive Congress of all 
pretence for ever attempting to legislate upon the subject 
of religion. The government oifers no hindrance to 
any, while it affords protection to all religious sects. -^ 

The terms " freedom of speech and of the press," mean 
the right to speak and publish vjJiatever is not in deroga- 
tion of private rights. But no one has a right to speak 
or publish what will injure another ; — hence the law of 
slander and lihel. 

The right of the people to assemble, either to petition 

Art. 1st.— What restrictions are placed upon the power of Con- 
gress by Art, 1st ^ What is the meaning of the terms " freedom of 
speech and of the press ?" 



128 CONSTITUTION OF THE 

Art. II. — A Vv^ell-regulated militia being ne- 
cessary to the security of a free state, the right of 
the people to keep and bear arms shall not be 
infringed. 

Art. III. — No soldier shall, in time of peace, 
be quartered in any house \vithout the consent of 
the owner, nor in time of v/ar but in a manner to 
be prescribed by law. 



or for any other purpose, arises necessarily from the form 
of a republican government. 

Article II. 

The term " militia" is applied to that species of sol- 
diery which is composed wholly of enrolled citizens held 
ready for service, but not actually under arms. 

Article III. 

This article is intended to guard against the tyranny 
which arbitrary governments have sometimes exerted, 
by keeping large numbers of troops quartered upon the 
peaceable citizens, to watch over their motions and hold 
them in subjection. 

The people of this country, while under the dominion 
of England, had felt, too sensibly, the evils arising from 
the want of arms, and the presence of fore:'gn troops, not 
to take every precaution against their recurrence. 



Art. 2d.— What is the second amendment ? To what is the term 
" militia" applied ? 

Art. 3d.— What is the third amendment .' For -what was this ar- 
ticle particularly intended ? 



tJNITED STATES. 129 

Art. IV. — The right of the people to be se- 
cure in their persons, houses, papers, and effects, 
against unreasonable searches and seizures, shall 
not be violated, and no warrants shall issue but 
upon probable cause, supported by oath or affirm- 
ation, and particularly describing the place to be 
searched, and the persons or things to be seized. 

Art. V. — No person shall be held to answer 
for a capital, or otherwise infamous crime, unless 
on a presentment or indictment of a grand jury, 
except in cases arising in the land or naval forces, 
or in the militia, when in actual service in time 
of war or public danger ; nor shall any person be 
subject, for the same offence, to be twice put in 
jeopardy of life or limb; nor shall be compelled, 
in any criminal case, to be a witness against him- 
self, nor be deprived of life, liberty, or property, 
without due process of law ; nor shall private 

Article IV. 

The power of an officer to arrest and imprison any one 
at his discretion, has often been an engine of great op- 
pression under arbitrary governments. This article was 
designed to prevent the possibility of such a practice here. 



Art 4th. — What is the fourth amendment ? For what was this 
article particularly designed ? 

Art. 5th. — What provisions are made in this article to guard 
against violations of personal hberty and private rights ? 



130 CONSTITUTION OF THE 

property be taken for public use without just 
compensation. 

Art. VI. — In all criminal prosecutions, the 
accused shall enjoy the right to a speedy and 
public trial, by an impartial jury of the State and 
district wherein the crime shall have been com- 
mitted, which district shall have been previously 
ascertained by law, and to be informed of the na- 
ture and cause of the accusation ; to be confronted 
Avith the witnesses against him ; to have compulso- 
ry process for obtaining witnesses in his favor, and 
to have the assistance of counsel for his defence. 

Art. VII. — In suits at common law, w^here 
the value in controversy shall exceed tv/enty dol- 
lars, the right of tTial by jury shall be preserved, 
and no fact tried by a jury shall be otherwise re- 
examined, in any court of the United States, than 
accordino; to the rules of the common law. 

Art. VIII. — Excessive bail^ shall not be re- 
Amendments 5th, Gth, and 7th, have already been con- 
sidered in connection with another part of the Constitu- 
tion. 

Article VIII. 
a Bail is a term used for siting rt liberty one arrested, 

Art. Gth. — What privileges are iiere given to individuals, in crim- 
inal proserutions against them ? 
Art. 7th. — What is the seventh amendment 1 
Art. Sth.— What is the eighth amendment ? What is " bail ?'* 



UNITED STATES. 131 

quired, nor excessive fines imposed, nor cruel and 
unusual punishments inflicted. 

Art. IX. — The enumeration, in the Consti- 
tution, of certain rights, shall nbt'be construed to 
deny or disparage others retained by the people. 

Art. X. — The powers not delegated to the 



on surety being given for his appearance at the time and 
place appointed. 

What must be determined excessive br.il or excessive^ 
fines, must be determined by the proper judge or court in 
each particular case, since what v^ouid be excessive bail 
in one case, would be extremely moderate in another. 
The design of the article is, therefore, to declare, in gen- 
eral terms, that bail is to be taken, and fines imposed, for 
the purposes of justice, and not as means of oppression, 

Article IX. 

This article is designed to affirm, that, although the 
Constitution had enumerated certain rights as belonging 
to the people, 5'et it did not design to affirm that the peo- 
ple should retain no other rights than those expressly re- 
served to ihem. It shoVv'S the care with which the people 
guarded against any unauthorized extension of the power 
of the general government. 

Article X. 

As the Constitution derives all its power from the peo- 
ple, it consequently follows that all authority which is 

What must be considered " excessive bail," and " excessive 
fines ?" 

Art. 9th. — What is the ninth amendment? What is the partic- 
ular design of this article ? 

Art. 10th. — What is the tenth amendment ? 



132 CONSTITUTION OF THE 



1 



United States by the Constitution, nor prohibited 
by it to the States, are reserved to the States re- * 
spectively, or to the people. 

Art. XL — The judicial power of the United 
States shall not be construed to extend to any suit, 
in law or equity, commenced or prosecuted against 
one of the United States by citizens of another 
State, or by citizens or subjects of any foreign 
state. 

(Article twelfth, of the Amendments, relating 
to the choosing of President and Vice-President, 
will be found under the head of " Executive.") 



not thus delegated, remains with the people^ the original 
source of power. 

(Amendments 11th and 12th, have already been con- 
sidered in their appropriate places.) 



Art. nth.— What is the eleventh amendment ? 



BOOK II 



ELEMENTS 



OF 



POLITICAL ECONOMY. 



12 



INTRODUCTION. 



Political Economy is the science of wealth, 
and treats of the principles and laws which gov- 
ern its creation ; of its course and order of distri- 
bution ; of its uses ; and, furthermore, of the con- 
sequences resulting from these several circum- 
stances. 

Wealth is any object having the power of 
gratifying human desire, or which is capable of 
being appropriated to that use. 

If a person be possessed of a large amount of 
money, he is considered wealthy, because the 
money will enable him to gratify numerous and 
important desires. But if a person could gratify- 
all his desires without the use of money, simply 
by a wish or a command, he would be as wealthy 
as man could be, and money would no longer 
be valuable to him. 

Value, therefore, is that particular quality in a 
substance which renders it capable of gratifying 

What is political economy ? 

What is wealth? 

WTien is a person considered wealthy ? 

What is value ? 



136 INTRODUCTION. 

human desire. For example, that quality in food 
which gives it value, is its capacity to gratify the 
desire of hunger in man. Different substances 
possess different degrees of value, which depend 
upon the nature and the Ti^^m^er of desires which 
they can gratify. 

Such articles as food, clothing, &c., which 
gratify necessary desires, have more intrinsic 
value than those which are mere articles of lux- 
ury and amusement. 

India rubber was formerly used for but one 
purpose, that of rubbing out pencil marks ; it is 
now used for the manufacture of shoes, and for 
many other important purposes. Its value, there- 
fore, has been greatly increased. 

The wealth of an individual, therefore, is pro- 
portioned to the amount of value that he possesses. 

Some substances, such as air, water, and sun- 
light, are capable of gratifying desire, without 
any change being made in them ; but not so with 
gold, silver, iron, &c. ; yet the latter also pos- 
sess value. The value of the former is intrin- 
sic. The latter may be exchanged for articles 
which have intrinsic value. 

There are, then, two kinds of value, intrinsic 

Upon what do the degrees of value in different substances, de- 
pend ? Examples ? 
How many kinds of value are there ? Examples ? 



INTRODUCTION. 137 

and exchangeable. Exchangeable value, is the 
power of one article to obtain something else in 
exchange for it. Gold has little intrinsic, but 
great exchangeable, value : air has vast intrinsic, 
but no exchangeable, value. Yet all articles 
which have exchangeable value, have some in- 
trinsic value. 

Those which have no exchangeable value, are 
found every where abundant, and inexhaustible, 
and are derived directly from the gift of the Cre- 
ator : such are the light of the sun, air, water, &c. 
The others derive their chief value from humcoU 
labor, and are limited either in quantity or in 
place. 

But, as articles of exchangeable value derive 
that value chiefly from human labor, they will be 
found in the possession of those who have exerted 
the labor requisite to produce them. But he who 
makes knives, will not give them away without a 
compensation for his labor. Hence, he who 
wants knives must either make them himself, or 
else he must offer in exchange for them some 
value which he himself has created. 



What is exchangeable value .^ 

How do articles which have no exchangeable value, differ from 
those which have exchangeable value .' 

Where will articles of exchangeable value be found, and how 
obtained ^ 

12* 



138 INTRODUCTION. 

Cost is the amount of labor and skill expended 
in the creation of value, and it is the cost of an 
article which, for long periods, determines its 
exchangeable value. When the degree of skill 
is the same, no man will exchange the products 
of two days' labor for that which has cost another 
man but one day's labor. 

If a hunter procure twenty-five pounds of ven- 
ison by a day's labor, and a fisherman one hun- 
dred pounds of fish, they will exchange labor for 
labor, and not pound for pound. If the hunter 
demand one hundred and fifty pounds of fish for 
twenty-five pounds of venison, the fisherman will 
not exchange in this manner, for he can better 
afford to hunt his own venison. 

But temporary circumstances may, for short 
periods, create a variation from this standard, and 
elevate the exchangeable value above, or depress 
it below, the cost. The cause of this variation 
we will nov/ briefly illustrate : — 

1st. If, during one season, a larger quantity of 
flour were carried into the city of New- York 
than was sufficient to supply the wants of the 
population, and all demands for the article, the 
price of flour would fall ; that is, the less amount 



What is cost ? 

What determines the exchangeable value of articles ? 

How illustrated ? 



INTRODUCTION. 139 

of other articles would a barrel of flour obtain by 
exchange. 

And this effect would be the same, although a 
barrel of flour cost no less this year than in the 
year previous. Hence, the greater the. supply, 
the les$ the exchangeable value. 

2d. If, whik the cost of producing flour re- 
mained the same, only half the quantity which 
was necessary to supply the wants of the popula- 
tion, were carried into the city, the price of flour 
would rise : and hence, the less the supply, the 
greater the exchangeable value. 

3d. Suppose that, on account of the high price 
offered for flour in some foreign country, it should 
become profitable to export it from New- York ; 
the great demand for flour would immediately 
raise the price: and hence, the greater the de- 
mand, the greater the exchangeable value. 

4th. Suppose that the demand for flour in New- 
York should suddenly cease, in a great measure, 
while there were large quantities in the market; 
the holders would, nevertheless, wish to dispose 
of their flour, and hence, there would arise a com- 
petition among them, each one striving to sell : the 
price of flour would, consequently, fall : and hence, 

The cost of production regulating exchangeable value, what cir- 
cumstances occasion a variation from this standard ? 
Illustrate the causes of this variation. 



140 INTRODUCTION. 

the less the demand, the less the exchangeable 
value. 

These principles operate to keep the supply of 
an article, usually, equal to the demand. This, 
in particular, is the case with regard to manufac- 
tured articles. Thus, in cities, the supply of hats, 
shoes, &c., is always equal to the demand for 
them. If more hats are manufactured than are 
sufficient to supply the wants of the community, 
the increased supply of the article will reduce the 
price below cost, and the manufacture of hats will 
cease, until the supply is reduced equal to the 
demand. 

Also, if there is not a sufficient number of hats 
produced to supply the demand, more persons 
will engage in their production, until the supply 
rises equal to the demand. Hence, also, we see 
why a scarcity is likely to be followed by an ex- 
cess, and high prices by low prices, and the con- 
trary. 

If there be a great scarcity, the high price of 
the articles induces many persons to engage in 
their production, and a surplus of the article, and 
a fall in price, is the consequence. 

Articles which will soon perish if undisposed 

What is the effect of these principles ? 

What articles are subject to the greatest fluctuations in ex- 
changeable value ^ 



INTRODUCTION. HI 

of, are subject to greater fluctuations in exchange- 
able value than those of more durable materials. 
Fish and fruits, if kept on hand, will soon perish, 
and the holder will dispose of them for less than 
their cost, rather than lose the w^hole. 

But iron, being a durable article, wall not be 
subject to such variations ; for, although it be kept 
on hand for years, it loses none of its intrinsic 
value. 

Also, articles w^hich require a long time for 
their production, are subject to greater variations 
in exchangeable value, than articles which may- 
be produced on demand. Thus, if there be a 
scarcity of wheat in the country, the price of that 
which remains will rise rapidly. 

But if there be a scarcity in the article of hats, 
the price will not rise as rapidly, because every 
person knows that the demand may be supplied 
upon short notice. 

The subject of political economy may be di- 
vided into four parts : — production, distribution, 
exchange, and consumption. 



What other articles are subject to like fluctuations ? 
How may the subject of political economy be divided? 



PART FIRST. 



OF THE PRODUCTION OF WEALTH, 



** Production is the act by which we confer 
a particular value upon any object whatever, or 
by which we give to any object its adaptedness to 
gratify desire."^ 

For example: — the miner of iron takes the 
ore from the earth, and, by his labor, converts it 
into a knife ; thus giving it a value which it did 
not possess before. This process, the creation of 
value, is called production. The person who 
performs the labor, is called a producer, and the 
article which is produced, viz., the knife, is called 
a product. 

The material upon which labor or industry is 
exerted, is called capital Thus, in the above 
case, iron ore was the capital. But the same ar- 

* Wayland. 

What is production? Example? 
To what is the tenn capital applied ? 



144 OF PRODUCTION. 

tide may, sometimes, be the 'product of one per- 
son, and the capital of another. Thus, leather is 
the product of the currier, and the capital of the 
shoemaker. 

But, "the term capital is not applied to the 
material only, upon which industry is to be ex- 
erted, but also to the instruments by which indus- 
try is assisted, and also to whatever is necessary 
to the support of that industry."^ 

Thus the capital of the shoemaker, is his leath- 
er, his tools, the provision for his support, &c. ; 
and, in fine, it is whatever of value or property- 
he possesses. 

The subject of production, may, therefore, be 
divided- into three parts : — 1st. Capital ; 2d. In- 
dustry; and, 3d. The principles which govern 
the application of industry to capital. 



SECTION I. 

Of Capital. 

As capital is the amount of value, or property, 
which each man possesses, capital appears in as 

^ Wayland. 

How may the subject of production be divided ? 
What is capital, and in what forms does it appear ? 



OF PRODUCTION. 145 

many forms as there are various employments of 
men. Thus, the farmer, the manufacturer, and 
the merchant, possess capital in as many forms as 
they have articles of value. 

In every industrious community, capital is con- 
tinually undergoing changes, by the effect of 
labor exerted upon it. The cotton and wool of 
the manufacturer, are changed into the fabrics 
which ^he produces. The wood and nai-s of the 
carpenter, are changed into houses. The seed 
and manures of the farmer, are changed into 
vegetables, and these again into the grain of the 
harvest. 

The merchant exports one commodity, and im- 
ports another of a different kind. Also, the in- 
struments and machinery of the several classes 
of laborers undergo changes, and are finally de- 
stroyed ; but if they have been properly used, 
their value reappears in another form, — in the 
increased value which they have given to 
the various objects upon which they have been 
employed. 

If the labor has been skilfully directed, the 
value of the product will be sufficient to replace 



What is said of the changes which capital undergoes ? 
If the labor required to effect the change be skilfully directed, 
what will be the result ? If otherwise ? 

13 



146 OF PRODUCTION. 

the value of the original material, and also to pay 
the laborer, and pay the interest of the capital. 
Capital often passes through many hands, con- 
tinually increasing in value, until it reaches the 
hands of the consumer, when, if it be profitably 
consumed, it again reappears in some form adapted 
to create a further increase of the means of enjoy- 
ment. 

Thus, wheat .passes from the hands of the feir- 
mer to those of the miller, then to the merchant, 
and thence to the consumer; but, if profitably 
consumed, its value reappears in reanimated 
health and vigor, by which we are prepared for 
subsequent labor. 

But, if we destroy a value, and produce another 
only equal to it, we lose our Icihor. If we destroy 
a value, and reproduce nothing, we lose both la- 
bor and capital. If the value created be superior 
to the value of labor and capital destroyed, we are 
so much the more wealthy. 

Hence, to add to our wealth, our labor must be 
profitably employed, — we must be industrious 
in creating value, and frugal in the disposal of it. 

Of the different kinds and forms of capital, 
there may be made two divisions ; the first, em- 
bracing productive, and the second, unproductive, 
capital. 

What are the principal divisions of capital .' 



OF PRODUCTION. 147 

'' Productive capitiil is that which, being in 
any manner united with industry, is in the pro- 
cess of augmentation. Unproductive capital is 
that which, not being united with industry, re- 
mains at the end of the year just as it was at the 
beginning. Money at interest, tilled land, and man- 
ufactories in operation, are productive capital. 
Money , lying in coffers, unsaleable materials, 
manufactories unoccupied, and land lying waste, 
are unproductive capital."''^ 

In all branches of production where there are 
no restrictions upon the use of capital, the rate of 
accumulation is nearly the same. For if one kind 
of business be unusually lucrative, capital wall 
flow into it, and men will engage in it, until, by 
competition, they reduce the profits to the ordinary 
rate. If commerce be unusually lucrative, more 
men will engage in it ; and if it be depressed, they 
will devote themselves to other pursuits. 

Nothing but oppressive legislation can render 
the rates of profit permanently unequal. In some 
parts of Asia the son must follow the calling and. 
occupation of his father, w^hether the business be 

'^ Y/ayland. 



What is " productive capital r' Unproductive capital .'' 
Where capita] and labor are free, does the rate of accumulation 
vary greatly in different branches of production ? Why not ? 



148 OF PRODUCTION. 

profitable or not. Such restrictions upon industry 
can be attended by no benefits, and almost incal- 
culable evils often flow from them. 

Capital may also be still further divided into 
fixed and circulating capital. 

Circulating capital comprises those articles 
of value which the owner wishes to dispose of as 
soon as produced. Thus, the wares of the mer- 
chant, the products of the manufacturer, and the 
harvests of the farmer, are circulating capital. 

Fixed capital comprises those articles of value 
which the owner does not wish to part with w^hile 
he continues his occupation, but the use of w^hicli 
he needs in the creation of other products. Thus, 
the ships and warehouses of the merchant, the 
machines and buildings of the manufacturer, and 
the tools and land of the farmer, are fixed capital. 

Moreover, circulating capital consists of those 
articles which are already prepared for the grat- 
ification pf human desire, or which are in a 
course of preparation for that purpose ; Avhile 
fixed capital, in general, consists of the instru- 
ments which, in some form or manner, assist us 



IIow may capital be still further divided? 
What is circulating capital.' 
What is fixed capital ? 

Does circulatins: capital require any further change before it 
ean gratify desire ? 



OF PRODUCTION. 149 

ia accomplishing this result. Money must, there- 
fore, be called fixed capital, because it cannot, di- 
rectly, gratify desire, but is subservient to this 
purpose, only by its utility in facilitating the ex- 
change of other articles of value. 

Circulating capital is rapidly consumed by its 
use in gratifying desire ; while fixed capital may 
last for a length of years If fixed capital be 
properly used, it increases the amount of circu- 
lating capital, and vice versx. Thus, the fixed 
capital of the farmer, if skilfully used, increases 
the amount of his produce, or circulating capital. 
The avails of his produce he applies, in part, to 
the gratification of his wants or desires, and in 
part to the increase of his fixed capital, by the 
purchase of more land, the erection of buildings, 
the improvement of his tools, &c., by which he 
is enabled ao-ain to increase the amount of his cir- 
culating capital : and thus they go on, year after 
year, mutually augmenting each other. 



What kind of capital, then, is money ? 

"^Vhichisthe most rapidly consumed, circulating or fixed capital ? 

How does the use of fixed capital increase circulating capital i 



13 



150 OF PRODUCTION. 



SECTION II. 

Of Industry. 

I. The object of industry is the creation of 
value. We have seen that capital can be increas- 
ed only by effecting some change in it, and it is 
evident that this change must be produced by la- 
bor. 

Different changes are required for different 
kinds of capital, and for the creation of different 
products. Thus, "the farmer, by means of seed, 
manure, and cultivation, aided by the agencies of 
the sun and the earth, of rain and the atmosphere, 
changes the elementary forms of carbon, gases, 
and water, into wheat. "^ Merchants and manu- 
facturers are generally employed in effecting 
changes in the aggregate forms of matter. Thus, 
the cabinet-maker changes the form of a board 
into that of a desk or a table. Others change the 
jplace of matter. Thus, the importer brings goods 
from abroad, the merchant carries them into the 

^ Wayland. 

What is the object of industry .'' 

What is the only manner in which capital can be increased ? 

What changes are required ^. 



OF PRODUCTION. 151 

^ country, and the farmer transports his produce to 
market. 

Hence the necessity of different professions 
and different occupations; which all concur in 
the creation of value. They mutually support 
each other, and there is no reason for jealousy 
between different classes of producers; — if left 
to themselves, they all flourish, and all suffer, to- 
gether. The farmer requires the tools and in- 
struments made by the mechanic, the cloths of 
the manufacturer, and the wares of the merchant; 
and if the business of the latter be obstructed, 
the former suffers with them. Thus it is with 
all: — they are mutually dependant upon each 
other. 

The industry above alluded to, which is requi- 
site to effect a change in matter, may be called 
the industry of operation, or, operative industry. 
The laborers in this department of industry are 
those who, guided by certain directions, put 
forth the physical effort necessary to create the 
values desired. Such are the mere operatives, 
or w^orkmen, in the arts. But, before this kind 
of industry can be exerted, there must be some 



Why the necessity of different professions f 
What is said of their mutual dependance upon each other ? 
What is " operative industry," and who are the laborers in thi« 
department ? 



152 OF PRODUCTION. 

persons who are able to give the necessary di- 
rections ; for labor exerted without design or ob- 
ject, will be attended with no utility. 

Hence there is need of two other kinds of in- 
dustry. 

First — The industry of discoverers or inves- 
tigators, Avho ascertain the laws or the estab- 
lished relations of things ; — such as the indus- 
try of Newton, v/hen he discovered the laws of 
gravitation ; and of Franklin, when he discover- 
ed the laws of electricity. The labor of philoso- 
phers belongs to this class. 

Secondly — The industry of inventors ; or those 
who avail themselves of the know^ledge acquired 
by discoverers, and apply it to some practical 
purpose. Thus Fulton, knowing the laws of 
steam, which had been previously discovered, ap- 
plied them to the purpose of propelling vessels 
through the water. Under this class may also 
be comprehended professional labor generally. 
The clergyman teaches us how to avail ourselves 
of the moral laws of the Creator. The lawyer 
teaches us how to avail ourselves of the laws of 
civil society, for the purpose of protecting our 



What is requisite before this industry can be exerted .' 

What other kinds of industry ? Explain them. 

Under which kind of industry may professional labor be ranked ? 



OF PRODUCTION. 153 

rights and redressing our grievances. The phy- 
sician teaches us how to avail oui selves of the 
physiological laws under which we are created, 
so that we may be relieved from sickness or pre- 
served in health. 

Two or three of these forms of industry are 
frequently performed by the same person. Thus, 
Franklin performed the labor of the discoverer 
when he discovered the laws of electricity ; he 
performed the labor of the inventor, when he ap- 
plied those laws to the construction of the light- 
ning rod ; and he would also have performed the 
labor of the operative, or artisan, if he had con- 
structed the rod with his own hands. 

The product of operative industry is a change 
of form or of place in matter ; while the pro- 
duct which the discoverer or inventor creates, 
is immaterial. It is knowledge, or a change ef- 
fected in mind. Political Economy treats almost 
exclusively of material products, because the val- 
ues of the products of discoverers and inventors, 
being immaterial, can be adjusted by no fixed 
rule. 

The exertion of operative industry confers 



Are the different kinds of industry ever performed by the same 
person ^ Example ? 

What is the product of operative industry } Of inventive in- 
dustry ? 



154 07 PRODUCTION. 

upon the laborer, either in whole or in part, a 
right to the value produced ; and the extent of 
this right can be easily known ^nd enforced 
where the product is material. Thus, the oper- 
ative manufacturer who receives wool, the pro- 
duct of the wool grower, and manufactures it into 
broadcloth, acquires a right to the additional 
value w^hich he has conferred upon the wool; 
and this additional value being easily known, the 
right to it can be easily enforced by seizing upon 
a material product. 

But in this respect there is a broad difference 
between the products of operative industry, on 
the one hand, and the products of discovery and 
invention, on the other. 

Although discoveries in science, and inven- 
tions in the arts, may demand both expensive and 
protracted labor, yet those who create knowledge 
have little means of monopolizing it, because the 
value produced resides in no tangible object. 

The discoveries of Locke and Bacon in the 
sciences, have been of inestimable value to man- 
kind, but the discoverers could realize only a 
small share of the profits accruing therefrom, be- 
cause the values produced being immaterial and 



Of what does political economy almost exclusively treat ? 
Are the products of mventive industry easily monopolized ? 



OF PRODUCTION. 155 

intangible, and easily conveyed to others by 
means of the press, and thus illimitably increased, 
soon cease to possess any exchangeable value. 
But civil society has devised means by which la- 
borers in the two last mentioned kinds of indus- 
try may receive some remuneration for their 
labor. The laws of copy and of patent right, 
by which authors and inventors are entitled, for 
a limited time, to the exclusive control over their 
works, are designed for this purpose. 

But there is need of laborers in each of these 
departments of industry. A community in which 
there were no discoverers or inventors, if isolated 
from the rest of mankind, would remain station- 
ary in civilization and the arts. 

It would be a mere machine, which had the 
power to execute, but not the mind to direct : like 
the steam engine, which, if combined v;ith proper 
machinery, and properly directed, is productive 
of the most useful results ; but whose power, if 
left to itself, is vainly dissipated or ruinously ex- 
erted. 

And, on the other hand, were the community 
composed entirely of philosophers, inventors, and 



What laws are designed to remunerate inventive industry .'' 
What is said of the importance of laborers in all the departments 
of industry.' 



156 OF PRODUCTION. 

professional men, whose industry was employed 
in the creation of knowledge only, they must, of 
necessity, starve. Knowledge is of no utility, 
unless some use can be made of it. Thus, we see 
that all classes of laborers are mutually necessary 
to, and dependant upon, each other. 



II. Of the modes hy which the productiveness of 
human industry may he increased ; and, firsts 
by the use of 7iaiural agents. 

In the early stages of society, industry is pro- 
ductive of but a small amount of value. The rea- 
son is, that here labor derives but little assistance 
from the use of natural agents. With nothing to 
labor with but his hands and feet, man could not 
subsist, except in the most temperate climes. 

By the invention of a very simple instrument, 
as a boAV and arrow, or a lance, his condition is 
materially improved ; and, by still further avail- 
ing himself of natural agents, and by economizing 
his labor, he may multiply his power, extend the 
circle of his desires, and increase the means of 
gratifying them, until he, at length, arrives at all 
the blessings of mature civilization. Hence, we 

What is said of industry in the early stages of society ? 



OF PRODUCTION. 157 

see the use of natural agents. Without them, 
human productiveness would be limited to the 
exertion of the mere physical powers of man. 

Natural agents, are all things, whether ani- 
mate or inanimate, which man can use for the 
purpose of assisting him in production. 

Animate natural agents, are beasts of burden, 
generally; such as the ox, the horse, and the 
mule ; and, also, in particular districts, the camel, 
the rein-deer, the elephant, and the dog. 

Some of the most important inanimate natural 
agents, are, the explosive force of gunpowder, 
wind, the gravitating power of water, and the 
expansive power of steam. 

Every one is familiar with the uses to which 
the natural agents are applied. The value of the 
benefits which they have conferred upon mankind, 
by increasing the productiveness of the otherwise 
unassisted labor of man, can be estimated only by 
comparing the advantages which a civilized com- 
munity possesses over a tribe of ignorant barba- 
rians. 

And, as by further discoveries in science, and 
inventions in the arts, the natural agents shall be- 



What are natural agents .'' 

What are animate natural agents ^ Inanimate ? 

What is said of the importance of the naturaj agents ^ 

14 



158 OF PRODUCTION. 

come more subjected to the power of man, and as 
knowledge becomes more widely disseminated, in 
the same ratio wuU the condition of mankind be 
improved, and the means of happiness aug- 
mented. 



III. Of the manner in ivhich productiveness may 
be increased by division of labor. 

It has been seen that the productiveness of hu- 
man industry, may be greatly increased by in- 
ventions and discoveries in the arts and sciences, 
by means of which man may avail himself of the 
use of natural agents. But human industry de- 
rives another important advantage from a proper 
division of labor. 

Thus, there are three departments of indus- 
try: industry of discovery, industry of invention, 
and operative industry ; and different laborers in 
each. 

In the first department, are ranked philosophers 
and men of science ; such as those who investi- 
gate the laws of mechanics, of astronomy, of 
navigation, and agriculture, &c. ; and here, also, 



By what other means, besides the use of natural agents, may \ 
productiveness be greatly increased .' 
What are the three principal departments of industry ? 



or PRODUCTION. 15SU 

there are many subdivisions. The astronomer, 
the mechanic, and the agriculturist, seldom make 
discoveries out of their own departments. 

In the second department, are those who make 
inventions in the arts, and. apply the laws discov- 
ered by the first class, to practical purposes ; and 
here a division of labor is equally necessary to 
success in inventive industry. 

In the third department of industry, there are 
as many distinct classes of laborers, and, conse- 
quently, as many divisions of labor, as there are 
different trades, pursuits, and professions, among 
mankind. 

And so extensive is the field of labor comprised 
within these three departments of industry, that, 
if the labor were not divided among many thou- 
sands, and if each individual were obliged to be 
his own discoverer, inventor, and operator, old age 
would come upon him, and death would close his 
labors, before he could receive any avails from his 
industry. 

Therefore, each individual succeeds best, and 
produces a greater amount of value, by devoting 
himself to but one occupation. If the farmer 



Who are ranked under the first department ? Under ^the sec- 
ond : Under the third .' 
What would be the result if there were no di\isipn of labor .' 



160 OF PRODUCTION. 

were obliged to make his farming utensils, to 
build his own house and barns, make his own 
furniture, and manufacture his own clothing, it is 
evident that each article would be poorly made, 
and much time would be uselessly consumed. 

But, by constantly pursuing the same occupa- 
tion, a great degree of skill and dexterity are ac- 
quired, which greatly increase the productiveness 
of human labor. 

Division of labor, in a complicated process, 
avoids the loss of time required in passing from 
one operation to another ; it shortens the period 
required for learning an operation, and suggests 
the contrivance of tools for the performance of the 
operation in which they are employed. For, the 
simpler any operation is, the easier it is to con- 
trive a tool, or an adjustment, by which it may be 
performed. 

Some operations, in a given process, require 
greater muscular power, or greater dexterity, than 
others. Some can be performed only by the most 
experienced workmen, while others can be per- 
formed by children. 

Now, by division of labor, a rnanufacturer is 
enabled to employ, upon each operation, precisely 

What is gained by division of labor, in a complicated process ? 



OF PRODUCTION. 161 

the labor adapted to it, and is obliged to pay for 
each portion of the labor, no more than it is actu- 
ally worth. This must greatly diminish the cost 
of production. 

Thus, the manufacture of pins may be divided 
into ten or more operations, and each operation 
employ one laborer. Thus, the labor of making 
a pin may be divided into wire-drawing, wire- 
straightening, pointing, heading, turning, &c. 

But, some of the laborers employed, are men ; 
others, are women and children ; and their wages 
vary from six shillings to four and a half pence 
per day. 

If the labor were not divided, one person must 
understand the w^hole process; and, therefore, 
must be employed at the highest price of labor ; 
and, hence, he must be paid at the rate of six shil- 
lings a day, for that part of the work which is 
worth only four and a half pence a day. 

This would greatly increase the price of pins, 
and, also, occasion a great deficiency in labor. 
It is by this means, also, that occupation is pro- 
vided for the weak and the aged, for females and 
for children, who would, otherwise, be unable to 
earn any thing. 

What example is given as an illustration ? 
14^ 



162 OF PRODUCTION. 

Thus, by a proper division of labor, all the la- 
bor of the community is rendered productive, and 
an immense amount is annually added to the rev- 
enue of a country.^ 



IV. Limitations to the division of labor. 

Every process can be reduced to its most sim- 
ple operations ; and, v^hen we have arrived at this 
point, we can proceed no further in the division 
of labor. Thus, the labor of making a pm can 
be divided into many separate operations, each 
differing from either of the rest ; but there is a 
point beyond which this division cannot be car- 
ried, for it is no division of labor to employ two 
men to perform the same operation. 

From what has been said concerning the ac- 
quisition of skill, the saving of time, &c., by this 
division of labor, it is evident that an establish- 
ment which carries the division to this limit, and 
has just so many laborers as will fully employ 
each other, can undersell any other establishment 
of the kind, which does not carry the division of 

^ Way land. 
What is the natural limit to the division of labor ^ 



OF PRODUCTION. 163 

labor to the same degree of perfection. And the 
more perfectly this division of labor, and of labor- 
ers, is accomplished, the greater will be the econ- 
omy. 

But the division of labor may also be limited 
by other causes. These are, the limitations of 
capital, and of demand. 

1st. The greater the division of labor in any 
establishment, the greater the amount of capital 
which is requisite. Thus, in a pin manufactory, 
where division of labor is carried to its utmost 
limit, the proprietor must have sufficient capital 
to provide a large amount of the gross material, 
in order to keep all his laborers employed. A 
large amount of capital is requisite to establish and 
keep in operation such a manufactory. 

Hence, in a poor, or in a new, country, before 
capital has accumulated in the hands of large 
capitalists, there is but little division of labor. 
Manufactories will not be extensive, and the pro- 
ducts of the country will consist mostly of the 
raw materials, which require but little division of 
labor for their production. 

For example, in a new country, where cotton 
may be raised, the raw material, cotton, will be 



What other causes limit the division of labor .'' 
Why may not a division of labor be carried to any great extent in 
poor or new countries ? 



164 OF PRODUCTION. 

exported, in order to be wrought into cloth, where 
there are greater accumalations of capital, and 
consequently a greater division of labor. 

2d. Division of labor is controlled by the de- 
mand for the article produced. If, in a certain 
district, there has, heretofore, been a demand for 
all the cotton cloth which one factory, with the 
proper division of labor, can manufacture ; and, 
if the demand should now decrease one half, a 
portion of the laborers must be discharged, which 
would make the division of labor less, or the 
whole must work only half the time. The for- 
mer alternative would, probably, be preferred, as 
we know is usually the case. 

The demand for the article is controlled by sev- 
eral circumstances, which it may be well to men- 
tion : — 

1st. It is evident, that the greater the number 
of the consumers, the greater the demand, and 
vice versa. 

2d. The demand is controlled by the wealth of 
the inhabitants, for none buy but those who are 
able. 

3d. The demand is controlled by the cost of 



How does a diminished demand for articles affect a division oi' 
the labor required for their production .? 

By what several circumstances is the demand for articles con- 
trolled .? 



OF PRODUCTION. 165 

the article; ^vhich, as it is greater or less, in- 
creases or diminishes the number of consumers. 

The same principles, as enumerated above, reg- 
ulate the division of labor, vv'hether considered in 
relation to portions of the same country, or to 
portions of the whole world. There are, also, 
certain physiological laws which regulate the di- 
vision of labor in different countries. 

Only a very few of the objects of desire, are 
produced in one country; for, different portions 
of the globe possess different facilities for produc- 
tion, and no district possesses advantages for pro- 
ducing every thing. Thus, China produces tea ; 
Cuba produces sugar and cotton ; and New- York 
produces wheat ; and it would be folly for one 
country to attempt to produce those products for 
which it was in nowise adapted. 

And by this natural division of labor nations 
are made dependant upon each other ; and if one 
prospers, and exchanges and commerce are free, 
all prosper ; and if one suffers, all suffer. Thus, 
this mutual dependance makes it the interest of 
nations to seek the happiness arid prosperity of 
each other. 



What principles regulate the division of labor in different coun- 
tries.'' 
What is the effect of this natural division of labor ? 



166 OF PRODUCTION. 

V. Effects of the increased productiveness of hu- 
man industry. 

When industry is judiciously applied to capi- 
tal, the result is "product, value, or the means of 
gratifying human desire. That is, increased 
productiveness is equivalent to increased means 
of human happiness. If every man, in a partic- 
ular district, by the same amount of labor that he 
employed last year, were able this year to create 
twice as much value ; it must appear obvious that 
a greater number of desires would be gratified, 
and that, consequently, human happiness would 
be increased. 

This subject leads us to examine an objection 
which has been made — that the use of labor- 
saving machinery is prejudicial to the interests 
of the laboring classes. 

The objections urged against labor-saving ma- 
chinery are, that they employ a less number of 
laborers ; and hence, that many laborers are 
thrown out of employment. But, one general 
and incontrovertible argument against the truth 
of this objection is, that improvements in ma- 



What is the result of a judicious application of industry .^ 
What objections have been made to the use of labor-saving ma- 
ehinery ? 



OF PRODUCTION. 167 

chinery have been going on ever since the crea- 
tion ; that the demand for labor has not diminish- 
ed, and has more than kept pace with the increase 
of population ; and that in those districts where 
improvements are the most extensive, the labor- 
ers are the most numerous. The desires of man- 
kind have been found continually to increase with 
the means of gratifying them ; and although 
more products have been produced by this in- 
crease of productiveness, j^t the desires of man- 
kind have been found sufficient for their con- 
sumption. The population of a country is found 
to increase nearly in the ratio of its productive- 
ness. 

It is true, that by the use of machines the man' 
ner of labor is often changed, and a portion of 
the laborers are thrown out of that kind of em- 
ployment. But these changes are generally 
gradual ; for improvements in machinery are 
usually made by slow degrees, and as the de- 
mand for laborers becomes less, fewer will learn 
the trade, which will tend to keep up the wages 
of those who remain in it. But the improve- 
ment may be so sudden, that many laborers will 
be deprived of their present occupation. Thu3, 

What may be said of the truth of this objection .' 

What change in labor is effected by the use of machines f 



168 OF PRODUCTION. 

upon the introduction of the cotton gin machine, 
for freeing the cotton of the seed, Avhich before 
required an immense amount of labor, many la- 
borers were thrown out of this employment : but a 
new avenue for labor was thereby opened ; cot- 
ton became cheaper — it was used by thousands 
who before were unable to procure it, a greater 
demand for cotton was created, and a greater 
number of laborers demanded. There was a 
change in the manner of the labor, but the 
amount required was greater. And suppose the 
demand for cotton cloth to be doubled, there must 
not only be twice the amount of cotton produced, 
but also twice as many vessels built to transport 
it, and twice as many men to navigate them, be- 
sides a greater number of men to construct ma- 
chinery to fabricate the cloth. And all this in- 
creased demand for labor is the result of the 
introduction of a simple labor-saving machine. 

A printing press is a labor-saving machine. 
But by the invention of the art of printing many 
thousand copyists were thrown out of employ; 
and who can estimate the vast increase of labor- 
ers, in communicating knowledge, which this in- 
vention has given rise to 1 The desire for knowl- 



What has been the effect of the introduction of the cotton-gin ? 
Of printing presses .' 



OF PRODUCTION. 169 

edge, has fully kept pace with the means of grati- 
fying it. 

But producers are also the consumers of many 
products, and they derive an advantage from the 
cheapness of articles occasioned by labor-saving 
machines. Each is thereby able, by the same 
amount of labor, to procure a greater amount of 
the objects of desire. 

This is the same as though the income of each 
individual were increased : for, if a man can pro- 
cure, by one day's labor, double the amount of pro- 
ducts, it is the same thing in effect as though his 
vvasfes were doubled. 

By an increase of productiveness, therefore, 
every consumer is rendered richer. It is also 
one of the effects of machinery, as we have seen, 
that production is rendered more perfect; so 
that each person not only obtains more of the 
same article, by his own labor, but he also ob- 
tains a letter article. 

Machinery, in a greater or less degree, super- 
sedes human labor. Let us, then, suppose the 
extreme case, in which machinery should be 



What particular advantages do the producers themselves derive 
from the introduction of machinery .'' 

Suppose the extreme case, in which machinery should be made 
to supersede human labor entirely — what is the conclusion ar- 
rived at .^ 

15 



170 OF PRODUCTION. 

brought to supersede human labor altogether. 
*' Yet the numbers of mankind Avould not be 
thinned, for the sum total of products would be 
the same, and there would probably be less suf- 
fering to the poorer and laboring classes to be 
apprehended : for in that case the momentary- 
fluctuations, that distress the different branches 
of industry, would principally affect machinery, 
which, and not human labor, would be paralyzed ; 
and machinery cannot die of hunger ; it can only 
cease to yield profit to its employers, w^ho are 
generally further removed from want than mere 
laborers."^ Although this is hardly a supposable 
case, yet it serves to illustrate the principle. 

The conclusion, therefore, at which we arrive, 
is, that transient evil may sometimes be experi- 
enced by the producers, upon the introduction of 
labor-saving machines ; but that an increase of 
productiveness, occasioned by this means, is high- 
ly beneficial to the consumers, and ultimately 
beneficial to the producers themselves. All that 
we possess above the comforts of savage life, is 
the result of the use of natural agents, and of the 
increased productiveness of human labor. 

^ Say. 



OF PRODUCTION. 171 



SECTION III. 



Of the Principles lohich govern the Application 
of Labor to Capital. 

We have thus far considered labor and capital 
separately. But, as all production is the result 
of the application of industry to capital, it will 
be proper to consider the conditions on which 
they unite, and the law'S W'hich regulate their 
union. In examining the conditions on which 
labor and capital unite, and in investigating the 
laws of production, we shall be led into the se- 
cret of national wealth, and shall discover those 
principles of government and legislation which 
have advanced the prosperity of some nations, 
and the mistaken policy which has so often in- 
volved the depression and bankruptcy of others. 



I. Freedom of labor and capital necessary to 
production. 

Industry will be applied to capital in propor- 
tion to the security of property ; and as every 

How have labor and capital been considered thus far, and what 
is it now proposed to examine ? 
What is the first principle necessary to production ? 
What is said of the importance of security of property ? 



172 OF PRODUCTION. 

man enjoys the advantages of his labor and capi- 
tal. This is almost a self-evident proposition, for 
no one will labor unless he expects to receive the 
rewards of his industry. 

Where there is no division of property, and 
each one is at liberty to take what he will, as the 
indolent v/ill fare as well as the industrious, there 
is no incentive to industry. 

And the same consequence results from inse- 
curity of property. Where the avails of one's 
industry are liable to be taken from him, at any 
moment, by the rapacious hands of a tyrant, few 
will labor more than sufficient to support exist- 
ence ; for if the industrious lose the avails of 
their labor, they are no better off than the idle. 
Therefore, human labor will be exerted, in differ- 
ent countries, very much in proportion as the 
right of property is both understood and enforced. 

Hence the necessity of wise and efficacious 
laws, and the importance of all means which 
shall prevent the violation of the right of prop- 
erty, either by governments or by individuals. 

Therefore, to preserve freedom of labor and 
capital, and consequently to increase the amount 
of productiveness, moral and religious principles 



What is said of the importance of good moral and religious prin- 
ciples ? 



OF PRODUCTION. 173 

should be inculcated, and men should be taught 
to respect the rights of others. All violations of 
property should be redressed, and each individual 
should be allowed to use his property and his in- 
dustry as he Avill, and as he thinks will be the 
most advantageous to himself: for every man is 
more likely to ascertain in what manner he can 
best employ his capital and industry, than any 
other man can ascertain for him. 

But a government, by a mistaken policy, even 
when its object is the public w^elfare, may some- 
times aggravate the very evil which it is design- 
ed to remedy. 

If freedom of labor and capital be necessary 
to create the greatest amount of productiveness, 
we see what must be the effect of monopolies. 

A monopoly is an exclusive right granted to a 
man, or to a company of men, to employ their 
labor or capital in some particular manner. Such 
was the exclusive right granted to the British 
East India Company, to import into Great Brit- 
ain or her territories the productions of all coun- 
tries east of the Cape of Good Hope. 

The effect of such a regulation is, to restrain 
the freedom of labor and capital, and to prevent 
others from engaging in business which might 

What is a monopoly, and what its effect 1 

15* 



174 OF PRODUCTION. 

be profitable to them. Such a regulation, is tak- 
ing from one portion of community some of its 
natural rights, and granting them to others as a 
privilege. It is, therefore, a direct injury to 
those from whom the right is taken. 

Moreover, those who hold this exclusive priv- 
ilege, being liable to no competition, may charge 
for their commodities whatever they choose ; and 
thus the price w^hich the consumer must pay, is 
enhanced at the mere will of the monopolist. 
And it being for the pecuniary interest of the mo- 
nopolist to charge dear for his commodities, and 
there being nothing to restrain him, there can 
scarcely be imagined any limit to the oppression 
which he may exercise. 

In the case of a patent and copy right, which, 
perhaps, might be regarded as a species of mo- 
nopoly, no right is taken from the community, 
and the law interposes merely to guaranty to a 
man the avails of his own industry. 

There are, however, some kinds of business, 
in the good management of which the whole 
people are directly interested, which may be 
made the subjects of monopoly, for the general 
welfare. 



Are patent and copy rights monopolies ? 

In what cases may monopolies properly be granted .'* 



OF PRODUCTION. 175 

Monopolies are sometimes created for the pur- 
pose of building bridges and railroads, construct- 
ing ferries and digging canals, where they are 
objects of public interest ; and it is thought that 
such monopolies are often very beneficial. For 
they are, many of them, works that would never 
be undertaken by individuals, unless government, 
by preventing the competition of others, should 
secure to the proprietors of such w^orks a more 
exclusive right in them than they w^ould other- 
wise possess. 

But monopolies should never be granted w^here 
the exclusive object is to promote the interest of 
one person, or of a company of individuals. 

II. The greater the ratio of capital to lahor^the 
greater vjill be the wages of labor, and the 
greater will be the stimulus to industry. 

Those who hold capital, are desirous of uniting 
it with industry; and those who have" industry, 
are desirous of uniting it with capital : for, if they 
be not so united, neither wall yield any profit. 

Hence, w^hen the number of laborers is great 
in proportion to the capital, the demand for labor 

How does the ratio of capital to labor aifect wages, and how il- 
lustrated ^ 



176 OF PRODUCTION. 

becomes less, and the price of labor falls ; and, 
on the contrary, when the amount of capital is 
great in proportion to the number of laborers, the 
demand for labor increases, and the price of la- 
bor rises. This is always the case under a per- 
manent and wise government, where the right of 
property is secure, and men expect to receive the 
avails of their own industry. But, without any 
opposition to this principle, wages may be high, 
and the laborer be unable to appropriate them to 
the gratification of his desires, and here the stim- 
ulus to industry will be lessened. 

Such is often the case in a newly settled coun- 
try of great fertilit3'', where wages are high, but 
where the objects of desire are few, and attain- 
able with difficulty. 

But in a large city, where the ratio of capital 
to labor is great, the wages of labor increase in 
proportion ; and also the numerous objects of de- 
sire call forth a greater exertion of industry; for, 
by means of it, a greater number of desires are 
gratified. 

Hence, an accumulation of capital is an ad- 
vantage to the laborer as well as to the capitalist. 
For, as has been seen, the wages of labor rise in 



Of what advantage to the laborer, then, is an accumulation of 
capital ? 



OF PRODUCTION. 177 

proportion to the increase of capital ; that is, in 
proportion to the ability of those who must pay 
for the labor. 

Hence, if the laboring classes repine at the 
prosperity of the wealthy, they repine against the 
means of increasing their own rate of compensa- 
tion.* 



^ It must not, however, be supposed, that it is better for 
a nation, that one portion of the people should be mere capi- 
talists, and the other mere laborers ; that one portion 
should be very wealthy, and the other very poor : better 
if all, by industry, virtue, and economy, could attain to a 
moderate degree of independence, and thus unite the oc- 
cupations of laborer and capitalist. 

But, the principles, views, and abilities of men, are so 
different, to say nothing of the effects of fortunate or dis- 
astrous chances, or events, that any arbitrary attempts to 
equalize property, must be regarded as vain and foolish 
in the extreme ; and if property were equally divided to- 
day, there would be an inequality to-morrow. 

And, where this inequality arises from the economy 
and frugality of the more industrious members of commu- 
nity, and not from fraud and injustice, those less indus- 
trious, or less fortunate, have no cause of complaint, and 
have been defrauded of none of their rights. 

But, where distinctions in wealth have arisen, and are 
still propagated by a partial and oppressive government, 
which taxes the poor and industrious, for the support of 
the wealthy and idle, there is sufficient cause of complaint, 
and the wealthy are justly regarded as the enemies of 
the poor. 



178 OF PRODUCTION. 

III. The productiveness of industry and capital 
will he increased iyi proportion to the intellec- 
tual improvement of a people. 

Ignorant men are indolent, because they are 
unacquainted with the benefits that may be se- 
cured by industry, or because they know not the 
means of securing them. 

An Indian, who knows of no better condition 
than his own, has no motive to industry beyond 
what may be adequate to procure the simple ne- 
cessaries of life : but, acquaint him with the con- 
veniences and luxuries of civilized life, and that 
by an additional effort he can procure them, and 
his industry will expand with the occasion. Thus 
knowledge excites the savage to exertion, and 
directs that exertion to a profitable end. 

In all trades and professions, the object to be 
gained, viz., the amassing of wealth, and the con- 
sequent gratification of desire, is the prime mo- 
tive to exertion ; and knowledge and skill in one^s 
particular calling, are the sure and only means 
of success. 

We therefore see how labor must be stimula- 



What effect has the intellectual improvement of a people upon 
the productiveness of industry and capital.'' 
Why are ignorant men usually indolent .'' 



OF PRODUCTION. 179 

ted, and productiveness increased, by intellectual 
cultivation. The principle upon which this pro- 
ceeds, is so evident in itself, that there is little 
need of a further illustration ; for every day's ob- 
servation teaches us, that those who are the best 
acquainted with their business, are the most suc- 
cessful in it. 

Knowledge should be made general, and ex- 
tended to all classes in community, for the re- 
sources of all are enlarged by it. Also, the pros- 
perity of a nation will depend greatly on the pu- 
rity of its moral character. 

As morals become corrupted, idleness and crime 
increase. On the contrary, on the good moral 
character of a nation, and especially of a Repub- 
lic, depend the justice of its laws, security of 
property, and individual and social virtue ; the 
invariable attendants of which are industry and 
frugality, the sources of wealth and happiness. 

IV. Of Protective Duties. 

By protective duties, is here understood duties 
or taxes upon imported foreign products. Such 

Why does the prosperity of a nation depend greatly upon the pu- 
rity of its moral character ? 
What are protective duties ? 



180 OF PRODUCTION. 

duties are levied either for the purpose of favor- 
ing the domestic production of some product, — 
as when a duty is levied upon all imported 
broadcloths, for the purpose of favoring domestic 
manufactures; or, 2dly, for the purpose of public 
revenue ; or, 3dly, to support the manufacture of 
some important article of public use, so as to en- 
able a nation to rely on its own internal resources, 
in case of restrictions upon its commerce, by 
which a supply of foreign products may be pro- 
hibited. Each of these objects will be consider- 
ed in detail. 

1 St. Suppose that foreign broadcloths can be af- 
forded for five dollars per yard, but that our home 
manufacturers cannot afford them for less than 
ten dollars per yard. In this case, we should 
use foreign cloths exclusively. 

But suppose that government, for the purpose 
of supporting home manufactures, should now 
impose a duty of four dollars per yard on all im- 
ported broadcloths. Now all who purchased 
broadcloths, would be obliged to pay nine dollars 
per yard for the same, for they could not be af- 
forded for a less sum. 



For what purposes are they imposed .'' 

1st. When they are imposed for the purpose of favoring domes- 
tic manufactures, what are the arguments for and against them ? 



OF PRODUCTION. 181 

But it is evident that this duty would not sup- 
port home manufactures, for the profits upon the 
sale of domestic broadcloths would not be suffi- 
cient to pay the cost of production. For, if it 
cost ten dollars per yard to manufacture the cloth, 
and only nine could be obtained for it, as no prof- 
its would be gained in the business, none would 
engage in it. 

The effect of such a duty, then, where the duty 
is not sufficient to raise the price equal to the cost 
of production, is simply this : — the importer pays 
government four dollars per yard for all broad- 
cloth that he brings into the country; and the 
consumer, or purchaser of the cloth, pays the im- 
porter. In other words, the consumer pays the 
importer four dollars extra per yard, for which 
lie receives no value in return ; and the importer 
is merely the agent for transferring this money 
into the hands of government. 

The consumers, or the people generally, are 
ilosers to the full amount of the extra price paid ; 
4he importer neither loses nor gains by the oper- 
ation, because he charges the consumer or purcha- 
ser an extra price per yard equal to the amount of 
the duty 5 and the government receives the whole 
benefit, which is none other than an indirect tax 
upon those who use broadcloths. By such a duty 
16 



182 OF PRODUCTION. 

domestic manufactures are not supported, and the 
nation is evidently impoverished. 

But let us suppose that the duty, instead of be- 
ing four dollars, should now be increased to six 
dollars per yard. 

Then foreign cloths could not be obtained for 
less than eleven dollars per yard, and the domes- 
tic manufacturer being able to manufacture cloth 
for ten dollars, would be able to undersell the im- 
porter. Now encouragement would be given to 
domestic manufactures, and industry would flow 
in that direction in proportion as that business 
was more profitable than any other. 

But competition would soon reduce the profits 
to the same ratio that existed between other 
branches of industry. Nevertheless, as we can 
now furnish our own cloths cheaper than foreign- 
ers can produce them while they are obliged to 
pay the duty, we may use cloths wholly of do- 
mestic manufacture. Let us now see if the na- 
tion is any gainer in wealth by this system. 

We will suppose that the price at which cloth 
is sold, still remains at eleven dollars per yard. 
The manufacturer would then gain one dollar on 
every yard that he sold ; and it cannot be con- 
ceived that he could possibly gain more, for the 
cost of production, by labor, machinery, &c., is 



OF PRODUCTION. 183 

ten dollars per yard, and he sells for eleven. 
Free competition will always keep the price re- 
duced; and one branch of industry cannot lonof 
be more profitable than others, for the high prof- 
its will induce other individuals to make invest- 
ments in the business, until the rate of profit is 
reduced to its ordinary level. 

It is therefore evident, that the profits derived 
by the manufacturer are no greater than those 
derived from other branches of industry. The 
manufacturer gains one dollar profit on each 
yard, and the consumer evidently loses six dollars 
on each yard that he purchases. For, Avere it 
not for the duty on foreign cloths, he might have 
obtained those of the same quality for five dollars, 
and he now pays eleven. 

What profit, then, does the nation derive by 
the support of domestic manufactures ? It may 
be said that they give encouragement and sup- 
port to industry w^hich w^ould not otherwise be 
employed. 

But, although industry should be supported, it 
would be supported unprofitably, for the cost of 
production, as w^e have seen, is greater than the 
value of the product. Thus, in the above case, 
the value of broadcloth was five dollars per 
yard, for it could be manufactured for that ; and 



184 OF PRODUCTION. 

wherever a greater value is consumed in the 
manufacture of the product, the excess is so much 
loss. 

But again ; as the price of broadcloth rises, the 
demand for it will lessen, and if the price be 
doubled, probably not half the quantity will be 
used. One half of the consumers, and those of 
the poorer classes, will thus be deprived of the 
use of the article. 

And if the price of broadcloth be doubled, and 
only half the usual quantity used, the community 
will pay the same for the half that they did for 
the whole, and the sam^ amount of industry will 
be employed as before. But it will be industry 
unprofitably employed ; the same as where a la- 
borer might have obtained a bushel of wheat for 
a day's labor, and now voluntarily works two 
days for the same.^ 



^ It is sometimes cheaper for a man to buy goods than 
to manufacture them ; it is sometimes cheaper for a man 
to buy wheat than to raise it. Upon the same principle 
it is sometimes cheaper for a nation to buy its broadcloths 
than to manufacture them. And the principles which 
should govern the policy of individuals and of nations, 
are the same. If a farmer has time, which he could not 
projfitably employ in any thing else, he may make many 
of his farming utensils ; but if the business of cultivating, 
gathering, and disposing of his crops demands the whole 
f»f his time, he had better purchase bis farming utensils 
of the mechanic. If the farmer could make all his farm- 
ing utensils equally well as the mechanic by working" 



or PRODUCTION. 185 

2d. We are next to consider duties upon im- 
ports, as a system of taxation ; that is, where 
they are imposed for the purposes of public reve- 
nue. 



twenty days in the year, and if by working upon his farm 
ten days in the year he can raise produce sufficient to 
purchase his farming utensils, the latter would certainly 
be the most politic course for the farmer to pursue. The 
same principle may be applied to nations. 

Now, suppose that Great Britain had hitherto supplied 
us with all the broadcloth that we used, and that she ex- 
ported to this country one hundred thousand yards annu- 
ally; suppose that we paid for this cloth five hundred 
thousand bushels of wheat, which cost the country five 
hundred thousand days labor; now, suppose that we 
could not manufacture the same amount of cloth, of the 
same quality, with less than eight hundred thousand days 
labor, what would be the best policy for the country, to 
manufacture the cloth, or to raise the wheat, and send 
that in exchange for it '? 

The answer is at once obvious. AYhile we can raise 
the wheat, we shall purchase our cloths with it. But if 
there is a great amount of industry in the country which 
could not be employed in raising wheat or any other pro- 
ducts by which to obtain the broadcloth, we might then 
find it the best policy to manufacture our own cloths ; 
the same as the farmer, who had not land enough to em- 
ploy his whole time in raising wheat or other products, 
might find it a saving to make a part or the whole of his 
farming utensils. It is for the advantage of nations, as 
well as of individuals, to obtain their necessary articles 
of consumption with the least possible amount of labor. 

But although it may at first cost us more to manufac- 
ture our own cloths than to pa^^ other countries for them, 
it may be urged, that by protective duties, we shall short- 

2d. What are the arguments for and against protective duties, 
when imposed for the purposes of public revenue ? 

16* 



186 OF PRODUCTION. 

The revenue which is obtained from duties on 
imports, is not levied in proportion to the weahh 
of those who pay. A person worth a million of 
dollars may avoid paying the tax, by not using" 

en the period at which we may profitably supply our- 
selves, and that thus our ultimate benefit will more than 
repay our temporary loss. And first, what proof have we 
that we can ever manufacture cloths as cheaply as Eng- 
land, for example, can manufacture them 7 And why can 
England or any other country now afford them so cheap- 
ly'? If we inquire into the causes that enable the English 
manufacturer to afford cloths at so low a price, I appre- 
hend that we shall not be so ardent to see the same state 
of things arrive in our own country. Until our popula- 
tion, and especially the operative classes, become so nu- 
merous that the laborers are obliged to work for a bare 
subsistence, the wages of labor can never be so low in 
this country, nor, consequently, can manufactured pro- 
ducts be afforded so cheaply here, as in Great Britain, or 
in any other country where the same causes operate to 
keep down the wages of labor. 

I speak here of the manufacture of those products for 
which one country affords no better natural facilities than 
another. If Great Britain receives the cotton which sup- 
plies her manufactures at the same rate that Massachu- 
setts receives hers, and the natural facilities of water, 
steam power, machinery, &c., are the same in both coun- 
tries — if, then, the wages of labor are lower in England 
than in Massachusetts, England can certainly manufac- 
ture cotton^ cloth cheaper than Massachusetts can afford 
it. Therefore, before concluding that manufactures can 
be supported as cheaply and profitably in one country as 
in another, we must take into consideration the natural 
facilities of each country, and the wages of labor as they 
now are, and as they are likely to be in future. 

But if it be thought, that by the natural course of events, 
we can ever manufacture any given article as cheaply as 
any other nation can produce it, the further question 
arises^ can we, by protective duties, hasten such an event ; 



OF PRODUCTION. 187 

the article upon which the tax is levied ; while a 
poor person, by using- the article, may pay the 
greatest amount of taxes. 

If the duty were upon broadcloths, the man 

and if so, can we do it profitably 'I For it may be that 
the cost would be far greater than the gain. As has been 
shown, protective duties are a present tax upon the na- 
tion ; and if their object be to encourage our manufactures 
until such period as they can support themselves, they 
should not only be able to support themselves after such 
period, but also to repay the expense of that fostering care 
which has been bestowed upon them. 

For the support of manufactures in a country that pos- 
sesses natural advantages for them, large accumulations 
of capital in the hands of individuals are necessary, and 
also a numerous population ; and the more numerous 
and the poorer are the operatives, so much the cheaper 
may the m_anufactured articles be afforded. If the wealth 
of a community be pretty equally divided among its in- 
habitants, it is evident that the wages of labor will be 
higher, for those in easy circumstances will not labor as 
cheaply as those who are pressed by immediate want. 

Now, it has been shown, that where protective duties 
are necessary for the support of domestic manufactures, 
they do not increase the sum total of the capital of a coun- 
try, but, on the contrary, the country is impoverished by 
them, for they occasion an unproductive expenditure of 
industry. But yet it is true that protective duties, if car- 
ried to a very great extent, may work such a change in 
things that manufactured articles may be produced as 
cheaply in the country impoverished as elsewhere; for 
although protective duties impoverish the nation, they 
impoverish that portion of the nation chiefly which pays 
the duties or the extra price occasioned by them, and the 
other portion (the manufacturers) continue to increase in 
wealth. Thus, although there is a deduction from the 
national capital, yet what remains accumulates in the 
hands of a few, and the remainder are rendered poorer 
than they otherwise would be. 



188 OF PRODUCTION. 

worth five thousand dollars would want as many 
coats as the man worth a million, and he must 
therefore pay as high taxes, if the public revenue 
were all derived from this source. 

By the continued operation of such causes, manufac- 
tures may finally be supported, if they will only increase 
the population to such an amount that there will be no 
other source of industry open for them ; for protective 
duties evidently collect capital in the hands of the few, 
and impoverish the great mass of the community. So far 
they are favorable to the support of manufactures ; but it 
must be confessed it is not so readily seen what tendency 
they have to increase the numbers of the population ; for 
as the means of subsistence fail, it is a natural conse- 
quence, and has always been seen, that the population 
diminishes. But if the population, and especially if the 
poorer classes are sufficiently numerous, domestic manu- 
tures may bfe supported, although their introduction may 
have been attended by an unprofitable consumption of the 
national wealth. But no person should wish them to be 
introduced before their natural time, if the unnatural 
means used for the purpose are attended with such fatal 
consequences. 

At their proper time, manufactories will be established 
in every country where they can be rendered profitable, 
and it is thought that no legislative enactments can hasten 
that period without inflicdng upon the country an evil 
greater than the good which is gained. But as facts are 
a kind of argument the least liable to contradiction, we 
will advance a few to illustrate the effects of the French 
protectiv^e system. 

To favor the working of her own mines, France has 
imposed duties on all foreign iron imported into the coun- 
try. During a period of eight years, from 1814 to 1822, 
the French have paid, in the increased price of native 
iron, occasioned by the duties on foreign iron, upwards 
of forty millions of francs. This is the direct cost for 
protection : in other words, it is the price that France has 
paid for unproductive industry, for she could have ob- 



OF PRODUCTION. 189 

Another oBjection is, that the taxes paid by this 
method do not all accrue to the government. By 
a duty of five dollars per yard on imported broad- 
cloth, the price of all broadcloth in the country is 

tained the iron for forty millions of francs less than she 
gave for it. The iron which the French are obliged to 
use, is rendered dearer by this system, consequently the 
demand for iron has diminished, for fewer can afford to 
use it ; and wherever i-t is used, it has increased the price 
of every thing with which it is connected. 

" The eifect of these measures is to add fifty francs to 
the price of a plough, and to render cotton machinery one 
third dearer than it otherwise would be if imported. The 
price of charcoal has been doubled or trebled, and from 
twenty-five to fifty per cent, has been added to the price of 
iron and wood." And yet the iron business remains 
below the av^erage rate of profit. 

France has imposed a duty on foreign sugar ^ which has 
indeed increased the quantity made at home and at her 
islands ; but by the eifect of this duty, France pays for 
the sugar that she now uses one million four hundred 
thousand pounds per annum more than she w^ould other- 
wise pay. Suppose this to continue for twenty years, it 
will then amount to twenty-eight million pounds sterling, 
the interest of which, at five per cent., will buy nearly the 
whole amount of sugar now consumed in France. It was 
thought that these duties would give encouragement to 
the manufacture of sugar from beet-root, which would 
finally supply France at the ordinary price. But long 
before such a period can arrive, if it ever can arrive, 
France will have expended a sum of money, the interest 
upon which would far more than supply her with the 
sugar that she now consumes. 

In order to favor the cotton manufacture, for which she 
is but poorly adapted, France has imposed duties upon 
the products of other nations, which have retaliated by 
imposing duties on her wines and silks. Thus other na- 
tions, which before purchased these articles of France, 
now supply themselves, which has been such an injury to 



190 or PRODUCTION. 

raised five dollars per yard, while foreign broad- 
cloth continues to be imported ; and governmeni 
receives only the extra price paid on that which 
is imported, while the consumers pay into the 

France, that since the Revolution her exports of wines 
and silks have considerably diminished. Thus the indus- 
try of France has been expended upon products that were 
not natural to her soil and climate ; and other nations, 
for the sake of retaliation, have expended their industry 
upon what is not natural to them. The productiveness 
of all countries would be greatly increased if all could be 
induced to follow the liberal system of free trade. 

But while many admit that the free trnde system would 
be the best for all nations, if all wonld adopt it, they con- 
tend, that if one nation adopts the prohibitive policy, others 
are obliged, in self-defence, to adopt the same. For ex- 
ample, we are told that if England imposes duties on the 
cotton that we export to that country, we must, in self- 
defence, oblige her to pay duties upon broadcloth, or some 
other product with which she supplies us. By obliging 
us to pay the duty on cotton. England may inflict a severe 
injury upon us, for she may thus deprive us of our best 
market for cotton; but at the same time she inflicts a 
greater injury upon herself; for if she attempts to culti- 
vate the cotton either at home or in her colonies, the very 
fact that she is obliged to support that cultivation by a 
duty upon our cotton, shows that her industry might have 
been more profitably employed in the creation of some 
other product which she might have exchanged for our 
cotton. 

But although we suffer by the policy of England, shall 
we gain any thing by adopting the same policy towards 
her'? If we impose a duty on her broadcloths, whether 
we attempt to manufacture our own cloths, or still use 
those of England, the country is impoverished, as has al- 
ready been shown. The only benefit, as I conceive, that 
we can derive from this system of retaliation, is. that we 
may, perhaps, compel England, by injuring her, to adopt 
a more liberal policy towards us. 



OF PRODUCTION. 191 

hands of the producers the extra price on Ameri- 
can cloths. Thus one portion of the people is 
paying into the hands of another, and not into the 
hands of government. 

But it is not simply taking five dollars from 
one man and giving it to another, — it is worse 
than this ; it is taking five dollars from the con- 
sumer, while the manufacturer receives, in the 
case supposed above, only one dollar profit, and 
the difference, four dollars, is consumed in unpro- 
ductive labor. It is so much value lost to the 
community. 

3d. Duties are sometimes levied on imported 
articles, in order to encourage their home manu- 
facture; lest, in case of war or some unforeseen 
event, the nation that produced the articles should 
refuse to supply them. 

Thus, if, in time of peace, we received all our 

If England closes her market against our cotton, we 
may refuse to receive her broadcloth ; we may, perhaps, 
injure her more than she can injure us. But while we 
continue the prohibitive policy towards England, we 
shall be injuring ourselves ; and the only wisdom in such 
a course, would be the probability that we might induce 
England to abolish her duties on our products. If the 
foreign trade of nations were regulated by their true in- 
terests, there would no longer be any necessity for this 
destructive system of commercial warfare. 

3d. What may be said of the policy of protective duties, when 
imposed for purposes of national safety ? 



192 OF PRODUCTION. 

munitions of war from Great Britain, because she 
could afford them cheaper than we could manu- 
facture them, it would certainly be an advantage 
to the nation to obtain them from that source, pro- 
vided it could always thus obtain them. But, if 
war occurred. Great Britain would prohibit the 
export from her ports of munitions of war, and 
we should be left at the mercy of our enemy. 

It is best for the nation to guard 'itself, at any 

hazard, against such an event. And, although 

duties upon articles of necessity are an evil, 

yet in the case above mentioned it may be an 

unavoidable one. 



V. Of Bounties, 

The design and effect of bounties is nearly the 
same as that of protective duties, and the princi- 
pal objections that may be urged against the for- 
mer, apply equally to the latter. But, in one re- 
spect they differ from protective duties. Bounties 
are never offered for the purpose of obtaining a 
revenue; on the contrary, government, in this 
case, is paying out money instead of receiving it. 



What is the design and effect of bounties ? 
How do they differ from protective duties? 



OF PRODUCTION. 193 

The manner in which bounties are bestowed, 
is the following- : — If foreign cloth can be afford- 
ed for five dollars per yard, and we cannot make 
it for less than ten, government gives to the home 
manufacturer five dollars for every yard that he 
sells, and the cloth is sold at its former price of 
five dollars per yard. 

But from whence does government obtain the 
money which it thus expends in bounties ? Evi- 
dently by taxing the people in some manner ; for 
government has nothing which it does not receive 
from the people. 

To show the inexpediency and folly of grant- 
ing bounties for the purpose of favoring domestic 
manufactures, would require but the same argu- 
ments which may be used against protective du- 
ties, for the effects of each upon production are 
the same. 

Bounties, however, the same as protective du- 
ties, may be effectual in supplying us with neces- 
sary products, such as munitions of war, &c., for 
the supply of which it would be unwise to de- 
pend upon foreign countries. But, for several 
reasons, bounties are less objectionable than pro- 
tective duties : — for, 

In what manner are bounties bestowed ? 

In what cases might bounties be bestowed with propriety ? 

Why are they less objectionable than protective duties ? 

17 



194 OF PRODUCTION. 

1st. The price of the article is not visibly- 
raised, and the rich and the poor are supplied as 
equally as before, and apparently, though not re- 
ally, as cheaply ; — for the taxes of all must be 
heavier, as from this source government obtains 
the revenue which it. expends in bounties. 

2d. In the case of bounties, we pay the extra 
price only upon articles of domestic manufacture, 
while by discriminating duties we pay the same 
upon articles both foreign and domestic. 

Thus, by a duty of five dollars upon every 
yard of imported broadcloth, the price of broad- 
cloth is liable to be raised five dollars, and the 
country pays this extra price for all the cloth 
which it consumes, whether foreign or domestic. 

But, by a bounty of five dollars on domestic 
cloths, the price of broadcloth is not advanced, 
and the country pays, in increased taxes, only for 
the cloths of home manufacture. The evil of 
bounties is of the same nature, although of less 
extent than that which arises from protective du- 
ties. 



PART SECOND. 



OF THE 

DISTRIBUTION OF WEALTH. 



It has been seen, in that part of this work 
which treats of production, that all exchangeable 
value is the result of the application of labor to 
capital. 

Where both labor and capital are the prop- 
erty of the same individual, the whole increase 
of value becomes his exclusive property; but, 
where they belong to different individuals, — 
where one advances labor and the other capi- 
tal, ^ — the value must be shared between them. 

It belongs to this part of the work to treat of 
the laws by which this distribution is regulated, 
in the various branches of production. 

Of what does this part of the work treat ? 



196 OF DISTRIBUTION. 

The subject of Distribution is different from 
that of Exchange. The former treats of the 
laws by which the immediate 'producers of value 
receive respectively their portion of the result : 
but the latter, considering these values as already 
apportioned among their respective owners, treats 
of the manner in which individuals make a mu- 
tual exchange of these values, and the principles 
which regulate those exchanges. 

After value has been created by the union of 
industry and capital, the first object is to divide 
that value among those who have contributed to 
the production. 

We shall therefore next proceed to consider the 
laws which regulate this division. 

We shall first consider the relative proportions 
of the value created which different kinds of labor 
receive. 

I. Let us, for example, suppose a cotton fac- 
tory to be established where many different kinds 
of labor are required. 

Among the laborers there will be some pos- 



How does the subject of Distribution differ from that of Ex- 
change ? 

What are the first laws to be considered, under the head of Dis- 
tribution ? 

How is the subject illustrated by the case supposed? 



OF DISTRIBUTION. 197 

sessing considerable skill and experience, ac- 
quired by previous discipline ; and others, whose 
manual labor only will be required, which any 
healthy laborer can afford, although possessed of 
no previous skill and experience. 

Now, we know that those of the latter class 
will be paid the lowest wages ; but, where some 
previous skill and experience are required, the 
wages will be higher. 

Where previous skill and experience are re- 
quired, and where trust and confidence also are 
reposed, as in those who manage the purchases 
and sales, a greater remuneration will be given ; 
and he who has the general supervision of the 
whole, will expect to receive the greatest remu- 
neration for his services. 

Suppose that the factory is a profitable estab- 
lishment, and that, at the end of each year, after 
settling the accounts of the receipts and expendi- 
tures, there remained a certain sum, to be divided 
among the laborers and the owners, of the capital 
employed. 

Of that part which falls to the laborers, let us 
see what are the principles which regulate their 



What principles regulate the wages of those who perform the 
simple labor f 

17* 



198 OF DISTRIBUTION. 

respective portions ; for we know they will not 
share equally. 

First, with regard to the portions of those who 
perform the simple labor, or that which is uncon- 
nected Avith previously-acquired skill. 

Such laborers must be paid at least as much as 
their labor costs them; that is, sufficient to fur- 
nish them with all the necessaries of life. For, 
if less be paid them, their number will diminish, 
and the class will soon become extinct. 

Their wages must also be sufficient to support 
their families — to support their children while 
unable to support themselves — and also to sup- 
port the aged and the infirm. 

The wages of all the laboring classes must be 
adequate for all these purposes — for these are 
the least wages which they can receive, and live 
and keep their species in existence. 

And, if the profits in any kind of industry were 
not sufficient to afford the means of support to the 
laborers, that branch of industry would soon be 
abandoned. 

It is however here to be remarked, that what 
is necessary to the sustentation and comfort of a 
human being, differs greatly in different climates, 
and in different countries in similar climates. 

The necessary cost of living in a cold climate, 



OF DISTRIBUTION. 199 

is usually greater than the cost of living in a 
warm climate. In the latter, therefore, the wa- 
ges of labor will be less than in the former. 

Thus, in some parts of the East Indies, labor- 
ers may be obtained for five or six cents per day ; 
while in the United States, a laborer can barely 
support himself with fifty cents per day. 

Thus, the greater the expenses of living, the 
greater will be the wages of labor.^ 

This general principle, the cost of living, is 
therefore the first and the most important princi- 
ple that regulates the wages of labor. 

But the wages of simple labor are often far 
above this point, and are also liable to many va- 
riations : the causes of which, we Vs^ill proceed to 
explain. 



* There sometimes arises a temporary exception to this 
general principle. It sometimes happens that a high 
price of food depresses rather than elevates the scale of 
wages. During a period of temporary scarcity, when, 
of course, provisions are high, the difficulty of procuring 
subsistence may force more laborers into the market, or 
exact more exertion from those already engaged, and 
thus the supply being too great for the demand, the wages 
of labor will fall. 

But the sufferings of the laboring class would, ere long, 
thin its ranks, and again reduce the supply to a level with 
the demand. This temporary exception is, therefore, a 
confirmation of the general principle. 



How does the cost of living vary in different climates ? 
And, how are the wages of labor affected thereby .'' 



200 OF DISTRIBUTION. 

If the profits upon industry and capital are 
great, and capital is abundant, the wages of labor 
will rise ; for, in proportion to the amount of 
capital, and the profits to be made by its invest- 
ment, the demand for labor will increase; and, 
the greater the demand for labor, the greater will 
be its exchangeable value. 

And, if the supply of labor be small, while 
there is abundant capital for its employment, the 
greater w^ill be the demand, and the higher the 
wages of labor. 

But, if the supply of labor be abundant, an 
opposite effect will be produced, and the wages 
of labor will fall. 

The application of these principles will deter- 
mine the wages which the common operatives in 
a cotton factory, or in any branch of business, 
will receive for their labor. 

The above are the most important principles 
which regulate the wages of simple labor. 

But there is another kind of labor that requires 
education, which of course adds to its cost ; and, 
where one kind of labor costs more than another, 
the wages must be sufficient to pay the whole 



What circumstances cause the wages of labor to vary from tha 
cost of living ? 
What regulates the wages of educated labor ? 



OF DISTRIBUTION. 201 

cost, or that kind of labor will soon cease to be 
produced. 

If, in the above factory, those who manage the 
purchases and sales should have previously em- 
ployed much time in commercial transactions, 
whereby they had acquired a skill in the man- 
agement of such business, as such skill can be 
obtained only by costly experience, they must be 
remunerated for all their skill has cost them, as 
no one hereafter will be to the expense of ac- 
quiring it. 

And, where an apprenticeship is required in 
any trade, the time thus employed, and the ex- 
penses incurred, must be met by a proportionate 
increase of wages paid for labor in such trade. 

Thus, before a person can be admitted to prac- 
tice in the professions of law and medicine, a pre- 
vious course of study must be pursued, and the 
practitioner must be remunerated for the expenses 
of his education ; and, as the time thus employed 
in acquiring the profession, has produced no rev- 
enue, he must receive an additional compensa- 
tion equal to what he might have obtained during 
the same time in other branches of industry. 

And, if it be a trade or profession in which 

How is it in different professions ? 

What general principles regulate the wages in the before-men- 
tioned factory ? 



202 or DISTRIBUTION. 

few succeed, those few w^ill be more highly re- 
munerated for their services. 

The same principles affect the wages of differ- 
ent kinds of labor in the before-mentioned factory. 
Each kind of labor must be paid at least as much 
as it has cost : the wages will then vary from the 
standard of cost, according to the fluctuations of 
supply and demand, and according to the profits 
obtained in that branch of industry. 

Thus, if a certain amount of profits is to be 
shared among the laborers in the factory, their 
relative proportions are to be determined by the 
above-mentioned circumstances. 

In determining the Avages of labor, therefore, 
mathematical exactness cannot be expected. All 
that can be effected, and all that is necessary, is 
firmly to establish general principles, from 
whence it will be easy to draw a multitude of 
inferences, varied and modified by circumstances. 

II. We next proceed to consider the relative 
proportions of the value created which fall to the 
share of different kinds of capital employed in 
the production. 

All capital which possesses exchangeable va- 



Can we arrive at mathematical exactness upon this point ? 
What is the second division of the subject to be considered? 



OF DISTRIBUTION. 203 

lue, (and that is the only kind of capital for the 
use of which any thing is given in exchange,) 
has been obtained by labor, and, consequently, 
represents a certain amount of labor. 

But, different kinds of capital represent differ- 
ent kinds of labor ; such as the labor of discov- 
ery — the labor of invention — and mere man- 
ual labor : consequently, the use of capital should 
be paid upon the same principles that the labor 
which obtained it was paid. 

Suppose that a western fur-trader should obtain 
the aid of an Indian to assist him in transporting 
his furs, and for twenty days' labor should agree 
to give him ten pounds of powder. 

This would be the wages of labor paid for 
twenty days' service. 

But, suppose the trader should no"w require a 
canoe, the building of which would cost the In- 
dian twenty days' labor. 

If he purchased the canoe, he would give him 
ten pounds of powder ; that is, allowing that the 
tools and materials of the Indian cost him noth- 
ing, and that this kind of labor required no more 
skill than the other. 



How has all exchangeable value been obtained ? 

Upon what principles should the use of capital be paid fori 

Illustrate the principle by the case supposed. 



204 OF DISTRIBUTION. 

But, if the trader only wished to obtain the 
use of the canoe, hov*^ much powder must he 
give for the use of this capital ? 

If he used the canoe but twenty days, he would 
not give ten pounds of powder for the loan of it 
during that time, if the canoe were but little in- 
jured by this use of it ; for then the Indian might 
lend it many times, and receive for the twenty 
days' labor employed in building it much more 
powder than he received for the same amount of 
labor employed in transporting furs. 

But, if the Indian knew that the canoe would 
be destroyed by this twenty days' use of it, he 
Avould then demand the ten pounds of powder. 

But, if the canoe might be employed a hun- 
dred days before it was rendered useless, then for 
the hundred days he would charge but ten 
pounds of powder, and for twenty days only two 
pounds. 

Thus, the interest paid for the use of capital, 
is determined by the same principles which reg- 
ulate the wages of labor. For capital is labor 
only in another form.^ 



» Smith asserts that all values produced, represent 
preexerted human labor, or industry, either recent or re- 
mote; or, in other words, that wealth is nothing more 
than labor accumulated, from which he infers the conse- 



OF DISTRIBUTION. 205 

In considering the wages paid for labor, we 
saw that different kinds of labor were paid differ- 
ent waoes. 

It is the same with the interest paid for the use 



quence that labor is the sole measure of wealth, or of 
value produced. 

Mr. Say considers this principle erroneous, and his ar- 
gument is, that when once an important invention is made, 
the production resulting from it, is no longer the product 
of the inventor's industry; that "the man who first dis- 
covered the propert}^ of fire to soften metals, was not the 
actual creator of the utility this process adds to smelted 
ore." 

It is true that the labor of discovering this process, if 
anv labor were required, did not create the utility here 
spoken of. Mr. Say is, therefore, correct, and I appre- 
hend that the views of Mr. Smith were also correct, al- 
thoug'h he failed to express them clearly. 

Although the utility of the above-mentioned process, 
was not created by the discovery, yet the exchangeable 
valiie of smelted ore, is still determined by the labor re- 
quired to effect that process. And the exchangeable value 
I suppose to be the wealth here referred to by Mr. Smith. 

Very great value is often created by a very small 
amount of human Industry, assisted by natural agents ; 
therefore, it is not human industry alone which creates 
this value. But it is nevertheless true, that the exchange- 
able value of that v/hich is created, is determined by the 
human industry required to be exerted. 

When, therefore, we speak of interest paid for the use 
of capital, and regard capital as only accumulated labor, 
we consider merely the exchangeable value of that capi- 
tal, which is all that regulates its rate of interest. 

For, however great the intrinsic vakie of the capital 
may be, while it costs nothing, that is, w^hile no labor is 
required to produce it, it is evident that nothing will be 
given for the use of such capital, any more than for the 
use of air and sunlight. 

18 



206 OF DISTRIBUTION. 

of capital. If it be a kind of capital which is ob- 
tained by mere manual labor, other things re* 
maining the same, the lowest rate of interest will 
be paid for it. But fluctuations of supply and 
demand will change the rate of interest, upon the 
same principles that the same causes will change 
the wages of labor. 

But if the capital be of a kind that required tal- 
ent, skill, and experience, in its production, it will 
ob ain a higher rate of interest. Therefore, the 
general principles which will regulate the inter- 
est paid for the loan of capital, is the cost of its 
production. 

But there are causes which greatly vary the 
rate of interest from this standard. 

The first are the fluctuations of supply and de- 



Therefore, we may, with perfect propriety, consider 
capital or wealth as accumulated labor, tox that portion 
of wealth which is not derived from human industry, has 
no exchangeable value whatever. 

But, as this exchangeable value varies from the cost of 
production, by the fluctuations of supply and demand, so 
the same fluctuations similarly affect the rate of interest 
paid for the use of the capital, as will be seen. 



Do the principles which regulate the wages of different kinds 
of labor, differ from those which regulate the mterest of different 
kinds of capital .'* 

What, then, is the general principle w^hich regulates the interest 
of capital ? 

What causes often vary the rate of interest from this standard ? 



OF DISTRIBUTION. 207 

mand, which are very evident, and require no 
comment. 

The second is risk. When a man loans capi- 
tal, there is always a risk of his not being repaid 
when he himself needs his capital, and also a risk 
of his never being repaid. And the greater this 
risk, whether it depend upon the character of the 
borrower, the security afforded to property by 
government, or the different modes of employing 
the capital, — the greater will be the rate of in- 
terest. 

In the third place, the rate of interest is varied 
by the different degrees of the productiveness of 
capital. The different degrees of productiveness 
vary the demand ; and the ratio bet ^veen supply 
and demand, produces the same effect upon the 
rate of interest as upon every thing else. 

Rent, or the price paid for the use of land, is 
regulated by the same principles which regulate 
the interest upon other kinds of capital. 

He ^vho hires land for the purpose of employ- 
ing it in production, pays according to its pro- 
ductiveness ; that is, according to the profits which 
may be derived from it. 

The price paid for the use of money, is called 

What is rent, and how regulated ? 
What is intei-est •'' 



208 OF DISTRIBUTION. 

ijitercsl, and is usually estimated in money, be- 
cause those who wish to borrow capital, usually 
borrow money in the first place, wherewith they 
obtain the capital. 

But it is in reality capital that is wanted, and 
not money. When, therefore, the interest of 
money is spoken of, it must be borne in mind 
that it is the same thing as the interest of capital, 
or the price paid for the loan of capital. 

But a man is allowed to loan his capital, and to 
receive for its use what others are willing" to 2:ive. 
But when he converts his capital into money, 
and then loans it, why should he be restricted by 
law, as he is in all civilized countries, in the price 
which he may receive for the use of it % Why 
the restriction in one case more than in the 
other ? 

If the legislature should enact that a man shall 
not, under severe penalties, receive more than a 
certain amount of compensation for the loan of 
land, farming utensils, &c., all w^ould say that the 
law unjustly interferes with the right of property. 
But, if the individual convert his property into 



ITow is capital usually borrowed ? 

Does the interest of money differ from the interest or price paid 
for the use of capital ? 

What difference have the laws made between the price paid for 
the use of capital and that paid for the use of money ? 



OF DISTRIBUTION. 209 

money, and he be restrained in the loan of it, is 
not the case the same ? 

But the real price of capital or money, or their 
real worth and value when employed in produc- 
tion, cannot be fixed by law ; — why then should 
the rate of interest remain the same, when capi- 
tal is so much more valuable at one time than at 
another ? 

Political economists have generally agreed 
that laws regulating the rate of interest are an 
unjust interference with the right of property, 
and injurious to the prosperity of a country. 

It is generally thought, on the other hand, that 
laws regulating the rate of interest prevent great 
fluctuations in the price of money, and that if 
there were no such laws, capitalists would often 
take advantaofe of the necessities of the borrow- 
ers, to extort from them an unjust and oppressive- 
price for the use of money. 

But fluctuations in the price of money are 
probably more likely to arise when the rate of 
interest is established by law. Suppose the estab- 



Can the real price or real profit of capital or money be fixed by 
law? 

What have "political economists generally thought of laws regu-^ 
lating the rate of interest ? 

What prevalent opinions are opposed to this 7 

How are these objections answered ; and what is the effect of 
the law regulating the rate of interest, upon the capitalist ^ 

18* 



210 OF DISTRIBUTION. 

lished rate of interest be seven per cent., but that 
capital invested in most kinds of business is worth 
twelve per cent. 

In such a case, those who have money will 
not loan it for seven per cent., but will either 
find some method of evading the law, as is often 
the case, and will receive the full worth of their 
money ; or they themselves will invest it in busi- 
ness, and thus receive the worth of it, viz., twelve 
per cent. 

Now, the result is the same to the community, 
whether the capitalist receives twelve per cent, 
for his money when he loans it to another, who 
will invest it in business ; or whether he himself 
thus invests it, and thus obtains its worth. 

But the effect of the law is to compel the capi- 
talist to invest his own capital in business, for 
which he may have no inclination and little skill, 
or to receive for it less than its real worth, and 
to surrender its profits, without compensation, to 
another. 

Now, when the profits upon capital rise above 
the legal interest, there will arise a great demand 
for capital, but no one will loan it at the legal 
rate, because it is worth much more. There is 



What will be the result when the profits of capital rise above th« 
legal rate of interest ? 



OF DISTRIBUTION. 211 

then a scarcity of capital, — no supplj', and the 
demand increasing. 

This increases the price which men are will- 
ing to give for the loan of capital, and those who 
are the least conscientious will break through the 
" cobwebs of the law,'- and avoid the penalty, by 
loaning at the legal rate, and receiving a present, 
or bonus, for the favor, in advance. This is of- 
fering a premium to those who are sufficiently 
daring to break the law, and skilful enough to 
screen themselves from its penalty. 

The law, then, establishing the rate of inter- 
est, has often a manifest tendency to increase 
those fluctuations to which the rate of interest is 
liable, and to bring the law into disrepute, by of- 
fering a premium to those who will break it. 
And it is well known to business men, that when 
the profits upon capital rise above the legal rate 
•of interest, the law becomes a dead letter. 

But it is also said, that if there be no legal in- 
terest established, capitalists will often take ad- 
vantage of the necessities of the borrowers. The 
same objections may be urged against the loan of 
other kinds of capital as against the loan of mo- 



What, tlien, is the effect of the law upon fluctuations in the rate 
of interest : 

What is the principal objection to the absence of a law regulating 
the rate of interest, and how considered ? 



:812 OF DISTRIBUTION* 

ney. If money, or other capital, were in the 
hands of only a few wealthy capitalists, they 
might monopolize the loan of it, raise the inter- 
est, and thus seriously oppress the borrowers. 

So far as there is danger from this source, it is 
a weighty argument in favor of establishing the 
rate of interest. Perhaps this evil might occa- 
sionally arise in individual cases, in the absence 
of such a law. 

But in this country capital is so universally 
disseminated among all classes, that this evil is 
little to be feared. Competition among those 
who have money or other capital to loan, would 
probably keep the rate of interest nearly upon a 
par with the profits to be made by the employ- 
ment of capital. 

Whether, then, the rate of interest should be 
established by law, or left to be regulated by the 
supply, the demand, and the profits of money, 
that is, of capital, is a question that would be at- 
tended with no diversity of opinion, were it not 
for the apprehended danger that a few capitalists 
would monopolize the loaning of money, and thus 
acquire the power of oppressing the borrowers. 

This danger would doubtless be the greatest in 



What, then, alone occasions the diversity of opinion upon thit 
subject ? 



OF DISTRIBUTION. 213 

a country where property is the most unequally 
distributed. But it is evidently proper that the 
law should define the rate of interest, when noth- 
ing was said on the subject in the contract. 

But the rate of interest paid for the use of mo- 
ney, is by no means a certain indication of either 
the prosperity or the adversity of a country. For, 
if the rate of interest be raised by an increase of 
risk, as this rise of interest benefits no one, it is 
an indication of adversity. But, on the other 
hand, if the rise of interest be occasioned by in- 
creased productiveness, as where the employment 
of capital affords greater profits than usual, then 
it is an indication of national prosperity. 

If the rate of interest fall, on account of the 
diminution of risk, it is then an evidence of in- 
creasing prosperity. But, if the fall be occa- 
sioned by a diminution of the profits formerly 
gained by the use of capital, it is then an evi- 
dence of national adversity. 

Thus, in England, a large amount of capital 
for which an interest is paid, is employed in man- 
ufactures ; but, if other nations should henceforth 
make their own manufactures, the capital thus 



Is the rate of interest any sure indication of either national ad- 
versity or prosperity .'' 
For what several reasons is it not ? 



214 OF DISTRIBUTION. 

employed in England would be thrown out of 
employ, and the rate of interest paid for capital 
would fall. The fall, in this case, would be an 
evidence of national adversity. 



PART THIRD. 



OF THE EXCHANGE OF WEALTH. 



Exchange is a transaction in which two in- 
dividuals mutually and voluntarily transfer to 
each other the right of property, to a given 
amount, either in capital or labor. ^ 

Exchange is of three kinds, viz : — 

1st. Barter in general, or exchange in kind. 
2d. Exchange by means of a metallic currency. 
3d. Exchange by means of a paper currency. 

* Way land. 



What is exchange ? 

Of how many kinds is exchange, and what are they ? 



216 OF EXCHANGE. 



SECTION I. 



OF BARTER IN GENERAL, OR EXCHANGE 
IN KIND. 

I. The necessity of Exchanges. 

As men are constituted with different aptitudes 
for different pursuits, and with different disposi- 
tions towards those pursuits, it will be an advan- 
tage to all if each one will devote himself to that 
occupation for which he is the best adapted. 

Thus, one man has a talent for mechanical pur- 
suits, one for agriculture, another for manufac- 
tures, and another for navigation. And if each 
be allowed to pursue the occupation for which he 
is best adapted, a greater amount of productive- 
ness will be the result; and the same with na- 
tions, as we have before seen. 

There are products which are natural to one 
country and not to another ; and no country pos- 
sesses advantages for producing every thing. But 
each individual and each nation wishes to obtain 
the products of other individuals and of other na- 



What kind of labor is the most advantageous for each individu- 
al, and for the whole community .^ 
What occasions the necessity for exchanges ? 



OF EXCHANGE. 217 

tions, and this can be effected only by an exchange 
of products. 

We have seen that productiveness is greatly 
increased by division of labor. The same prin- 
ciple applies to exchange. If each individual 
were obliged to make all his own exchanges, 
there would be a great loss of time and labor, 
and it would be better for the whole if a part of a 
society would devote themselves exclusively to 
the business of making them. 

Hence, we see the need of merchants, who ef- 
fect exchanges between inhabitants of the same 
country, or between different nations 

If the citizen who now purchases his groceries 
and drygoods of the merchant, were obliged to 
go to the original producers of these articles, and 
there exchange some products of his own for 
theia, the labor of exchange would be immense, 
and the cost of the articles inestimable. 

The wholesale merchant and the importer con- 
duct the exchanges between different nations, and 
the retail merchant purchases of the former, or 
of the manufacturer, and sells to individuals in 
smaller quantities. By this saving of time and 
labor, the exchanges increase the cheapness of 



What is gained by division of labor in exchanges ? 

19 



218 OF EXCHANGE. 

articles, and thus add to the productiveness of in- 
dustry. 

Although exchange simply, when uncombined 
with the labor of transportation, adds nothing to 
the value of a commodity, yet it adds greatly to 
the convenience of both buyer and seller. 

Thus, suppose two individuals, one of whom 
has two knives, and the other, two pencils. 

As one of each is useless, an exchange will be 
better for both. And although no value has been 
added to the articles by the exchange, yet each 
individual is richer than he was before, for he is 
now enabled to gratify a greater number of de- 
sires. 

It is thus with nations. A nation exchanges 
commodities which it does not need, for those of 
which it has greater need. 

Thus, Cuba produces more cotton and sugar 
than she requires for her own consumption, and 
New-York raises more wheat than she has need 
of, and a mutual exchange of products will be 
advantageous to both countries. 

This illustration is sufficient to show the falla- 
cy of the notion formerly entertained, that by ex- 



Does the simple exchange of a commodity add to its value ? 
How does it add to the convenience of individuals and nations ? 



OF EXCHANGE. 219 

change only one party is benefited, and that what 
one gains another loses. 

As a simple exchange, therefore, confers no 
new value upon the product, the exchange should 
be effected with as little loss of time as possible, 
in order that the article may be more speedily ap- 
plied to the use for which it was designed. 

Also, a delay in making the exchange adds to 
the price which must be paid for the article. 
This addition is the interest on the capital advan- 
ced. 

Thus, if a merchant purchase to-day a thou- 
sand dollars worth of goods, and sell them to- 
morrow, he charges the purchaser for his labor 
and skill, and adds to the sum the interest of only 
one day upon his capital. 

But, if he retain the goods a w^hole year, and 
then dispose of them, he charges for his labor 
and skill the same as before, and adds to the sum 
the interest on his capital for a year. 

Besides, if the merchant dispose of his goods 
within a week after the purchase, he may invest 
the same capital in goods, and sell it fifty times in 
the course of a year, and thus receive a profit on 
his skill and labor fifty times a year. 



How, then, should exchanges be effected ? 

What is tlie effect of a delay in making exchanges ? 



220 - OF EXCHANGE. 

Thus, rapid exchanges are advantageous both 
to the buyer and the seller, and, consequently, to 
the whole community.* 

As individuals exchange for the purpose of im- 
proving their condition, if they really exchange 
articles of less utility for articles of greater utili- 
ty to themselves, the more numerous their ex- 
changes, the more universally will their condi- 
tion be improved. And, whatever promotes such 
exchanges, promotes the happiness and prosperity 
of a people. And to this end, there must be, 



a Thus, if French silks were to be imported to New- 
York, the sooner they were disposed of, the better for all 
parties. But, should they be carried first to New-Orleans, 
thence up the Mississippi, and across the country^ to 
New-York, the producer or the exporter of the silks 
must charge the New-York merchant for all this extra 
labor of exchange and transportation, and the New-York 
merchant must charge the consumers a higher price, 
which would be so much loss to the latter, and the de- 
mand for the article would also be diminished; less silks 
could be disposed of, which would injure the business of 
the producer, the exporter, and the merchant. 

The sooner the producer gets his returns for his silks, 
the sooner he can recommence a new and equally lucra- 
tive operation. 

All unnecessary exchanges and transportation are 
nothing other than the expenditure of unproductive labor, 
which mast be paid for, but which adds no new value to 
the product. 



Why, thpn, are rapid px-chaiii:es advantaiirous to all .'' 
For what do individualiS excliange, and how only can they effect 
their object ? 



OF EXCHANGE. 221 

1st. A desire for exchange, which will depend 
principally upon the intelligence of the people. 

2d. An ability to exchange, which will de- 
pend upon the productiveness of their labor and 
capital ; and, 

3d. The security of proj)erty, which will de- 
pend upon their individual and social morality. 

That is, exchanges will be frequent in propor- 
tion to the intelligence, loealth, and moral char- 
acter of a people. 

II. Barter in general, or exchange in kind. 

It has been seen, that the general rate at which 
products are exchanged, is not quantity for quan- 
tity, but value for value ; because a given amount 
of labor will procure a much larger amount of 
some products than of others. 

The rate of exchange, therefore, is regulated 
by the amount of labor which is required to pro- 
duce the article.^ 

* Although exchangeable value is regulated by the 
cost of production, exchangeable value is not the cost of 
production, as has been frequently asserted. The cost of 
an article means simply the amount of labor expended, or 

Upon what do the frequency of exchanges depend ? 

What is the general rate at which products are exchanged? 

By what is the rate of exchange regulated ? How illustrated ? 

19* 



222 OF EXCHANGE. 

If an ounce of gold may be procured by one 
day's labor, and a hundred weight of iron may 
be obtained by the same amount of labor, the 
gold is said to be " of the same value," or, in 



the expense incurred in its production: but the exchange- 
able value of the article, or the price at which it is ordi- 
narily disposed of, is something more than the cost of its 
production. 

Cost and exchangeable • value are different things. If 
the}^ were the same things, commodities would be dis- 
posed of merely for what they cost ; that is, in manufac- 
tures, for instance, the money received by the sale of 
an article would only bs equnl to that expended in its 
production, and thus the manufacturer would gain noth- 
ing. 

But this is not so. In all profitable business, the cost 
of production must be somewhat less than the exchange- 
able value of the product. 

When a merchant imports a cargo of teas from the 
East Indies, he must first estimate what the cargo has 
cost him, and also the interest on the capital employed, 
before he can determine upon the price ; that is, upon 
the exchangeable value at which he ought to dispose 
of it. 

For this purpose, he must sum up the wages which he 
pays for labor — the amount which he exchanges for tea — 
the interest on the sum thus advanced — risk of the ship 
and cargo, or the premium paid for their insurance — the 
interest on the capital advanced in fitting out the ship; 
and, lastly, the wear and tear of the ship, &c., or the re- 
pairs required during the voyage. 

All of this is equivalent to the direct cost of production, 
added to the interest of the capital advanced ; and this, 
which is the whole cost or expense incurred, must be add- 
ed to the profit which the importer makes by his sales, and 
we then have the exchangeable value of the cargo. 

Capital, united with industry, together with the inter- 
est upon the capital used, which here goes to increase the 
exchangeable value of the product, may be said to be the 



OF EXCHANGE. 223 

common language, "worth as much" as the 
iron. 

Although, if by chance the ounce of gold should 
be found in its native state, it would be worth 
just as much, although no labor were required to 
produce it ; for the amount found, when compared 
with the whole amount which required labor for 
its production, would be so small, as not to affect 
the general principle. 

But, as the chances of obtaining gold without 
labor increased, the value of gold would propor- 
tionably diminish. 

In all exchanges, therefore, we may regard it 
as the labor which is exchanged, and not the in- 
trinsic values of the commodities. For the in- 
trinsic value of a hundred weight of iron is ines- 
timably greater than the value of an ounce of 

wages paid for tlie use of capital. Thus, capital and in- 
dustry both labor in production, and the same rules of 
supply and demand, regulate the wages of each. 

In the case supposed above, if the individual engaged 
in the business of importing tea, had hired the capital, 
which he was to refund, together with the interest, this 
-whole amount, interest and all, might be reckoned as so 
much labor exerted towards the cost of production, for 
labor might pay this interest. 

But the exchangeable value of the tea, must still be in 
advance of the cost of production, if the business were 
profitable, and must be estimated at the cost of produc- 
tion, added to the profit made in the business. 

What, then, may we suppose to be exchanged in all cases? 



224 OF EXCHANGE. 

gold. Mankind could dispense with the latter 
far more conveniently than with the former. 

In the earliest stages of society, all exchanges 
were made in kind — that is, by barter. If one 
savage wished to obtain a bow and arrow from 
another, he must obtain them by giving in ex- 
change some product of his own. 

But, as exchanges increased in number and 
amount, many disadvantages would arise from 
this mode of exchange. 

We have seen how division of labor increases 
productiveness, the effect of which is to multiply 
products in the hands of the producer. Thus, 
hats accumulate in the hands of the hatter, bread 
in those of the baker, and shoes in those of the 
shoemaker ; and the case is the same throughout 
all the trades and professions. 

fiut, although each individual produces but one 
kind of commodity, he Avishes to obtain a portion 
of the products of every other producer. The 
hatter has hats which he wishes to exchange for 
bread and shoes ; but, perhaps both the shoema- 
ker and the baker are at present supplied with 
hats, and wish for some other article — perhaps 
fuel. 



How were exchanges made in the ea,rly stages of society ? 
What inconveniences would arise from this mode of exchange f 



OF EXCHANGE. 225 

The hatter must, then, find some one who 
wants hats, and who has fuel to dispose of; and 
he must thus obtain the fuel ; and then, by a sec- 
ond exchange, he will be able to obtain the re- 
quired articles. 

But here is a loss of time, which must be add- 
ed to the cost of the hats, or the hatter will be a 
loser. Hats will then become dearer, which will 
be a loss to the consumer or purchaser; and as 
they become dearer, the demand for them will 
lessen, which will be a loss to the producer. 

But there is another difficulty which would at- 
tend exchange in kind. If the hatter wish for 
a penknife, or any article of less value than a 
hat, how is he to obtain it? He cannot divide a 
hat, but must find some one who will give in ex- 
change for it such articles as the owner of the 
knife may desire, and which are, moreover, ca- 
pable of being divided w^ithout injury. 

But material products are not the only things 
to be exchanged. One great article to be ex- 
changed, is labor. If exchanges were made whol- 
ly in kind, it would frequently happen that the 

What would be the effect of a loss of time required in exchan- 
ging, upon the price of the article ? 

How would both the consumer and producer be affected .? 

What difficulty besides the loss of time would attend exchange 
in kind ? 

Are material products the only things to be exchanged? 



226 OF EXCHANGE. 

laborer would not be able to labor for those who 
needed his services, because they could not give 
him in exchange such articles as he wished. 
The lawyer would be obliged to receive his fees 
in such commodities as his client produced ; and 
the same with physicians, and other professional 
men. 

The effect of these inconveniences in making 
exchanges would be, that fewer exchanges would 
be made, and each person would be his own 
farmer, mechanic, and manufacturer, and there 
would be no division of labor, except in its most 
imperfect form. 

Now, these inconveniences might be remedied 
if there were some appropriate article that was 
universally wanted, and which each person would 
be willing to receive in exchange for such pro- 
ducts as he wished to dispose of And then, by 
exchanging for this article, the producer might 
obtain, by another exchange, whatever he needed. 

The necessity for such an article, has led to 

he adoption of some medium of exchange even 

among the rudest nations. In pastoral nations, 

What difficulties, then, would the laborer encounter ? 

What would be the general effect of these inconveniences in 
making exchanges ? 

How might these inconveniences be remedied ? 

What articles have been used as a medium of exchange al differ* 
eni periods ? 



OF EXCHANGE. 227 

cattle were frequently used as a circulating me- 
dium. Property was estimated as being worth 
so many head of cattle. Thus, Homer mentions 
that the armor of Diomede cost nine oxen. 

Some of the baser metals were afterwards 
used. The Lacedemonians, under Lycurgus, 
established iron as the circulating medium. 

Shells and beads were used as "loney by the 
North American savages. 

The Romans used copper or brass, in the ear- 
ly ages of their history. 

But as these materials became more abundant, 
and consequently depreciated in value, gold and 
silver were substituted in their place. At first, 
gold and silver were weighed at every exchange ; 
but as this required much time and care, they 
were next fashioned mto coin, and the value or 
weight of each piece stamped on the face of it. 

Gold and silver are now used for the purposes 
of money throughout the civilized world. 

Copper is used only in the payment of sums 
less in value than the lowest denomination of sil- 
ver coin. 



How were gold and silver first used ? 



228 OF EXCHANGE. 



SECTION II. 

OF EXCHANGE BY MEANS OF A METALLIC 
CURRENCY. 

L Of the qualities necessary to thai which con- 
stitutes the circulating medium. 

The design and use of money, or of whatever 
is used as a circulating medium, is to facilitate 
exchanges. Whatever instrument best accom- 
plishes this purpose, should be selected ; and the 
preference is now universally given to gold and 
silver. Those qualities in gold and silver which 
have given them this preference, will be seen by 
inquiring into the qualities necessary to constitute 
a circulating medium. 

1st. The article used as a circulating medium 
must be universally desired as such; that is, it 
must be an article which every one is willing to 
receive in exchange for such products as he wish- 
es to dispose of 

This article or instrument for facilitating ex- 
changes, is called money. And if this article be 



What is the design and use of money ? 

What is the first requisite for the article used as a circulating 
medium ? 



OF EXCHANGE. 229 

not difficult of transportation, it is evident that 
every one will be willing to receive it in exchange 
for his own products, if he can obtain as much 
for his money as he could have obtained for the 
products which he disposed of for the money. 

Thus, a farmer exchanges a bushel of w^heat 
for a dollar, because a merchant will give as 
much tea or sugar for a dollar as he would have 
given for a bushel of wheat. 

And now the question naturally arises — what 
is it that renders money so valuable to communi- 
ty ? We answer — the same that renders a 
plough, or any other farming utensil, valuable to 
a farmer. The earth must be cultivated, and a 
plough is an instrument for cultivating the earth, 
and it is desired and is valuable for that pur- 
pose : — it greatly increases the productiveness of 
labor. 

But it requires labor to make a plough, and if 
the farmer exchange his products for it, he must 
give those articles in exchange which have cost 
him as much labor and skill ks the plough has 
cost the mechanic. 

We have said the earth must be cultivated. So 
also exchanges must be effected. Now, money 



Why are persons willing to exchange their products for money ? 
What is it that renders money so valuable to community ? 

20 



230 OF EXCHANGE. 

is an instrument for facilitating exchanges, and it 
is desired and is valuable for that purpose. In 
its department of labor — that is, in exchanging 
— it greatly increases the productiveness of la- 
bor. 

But the instrument, viz., money, cannot be ob- 
tained without labor, and its exchangeable value, 
like the exchangeable value of other articles, is 
regulated by the cost of production, varying, as 
other products vary, by fluctuations in supply and 
demand. 

If in New- York a bushel of wheat is exchan- 
ged for a dollar, it is because the labor expended 
in mining, in transporting the silver from the 
mine, and in coining, is equal to the labor expend- 
ed in raising the wheat, and in transporting it to 
the place of exchange. 

Thus, the exchange of silver and wheat is reg- 
ulated by the same principles which regulate any 
other exchanges. And the exchangeable value 
of the precious metals, like other commodities, is 
likewise influenced by the fluctuations of supply 
and demand. If more gold and silver are obtain- 
ed by the same amount of labor, their exchange- 



What regulates the exchangeable value of money ? 
How is the exchangeable value of the precious metals varied by 
fluctuations in supply and demand ? 



OF EXCHANGE. 231 

able value becomes less, that is, more money will 
be given in exchange for other products. 

This was the case after the discovery of the 
mines of South America, by which the amount 
of the precious metals was greatly increased. 
And if, by any reason, money becomes scarce in 
any country, so that there is not a sufficient quan- 
tity to effect the exchanges, then there will be an 
increased demand for money, and its exchange- 
able value will rise : — the same as if there were 
not a sufficient supply of ploughs in the country, 
— the demand for ploughs would increase, and 
their value would rise ; a greater amount of other 
products would be given in exchange for them. 

2d. The instrument used as a circulating me- 
dium should not be liable to sudden fluctuations 
of value, occasioned by variations in the cost of 
production. 

Suppose that an individual had exchanged to- 
day a quantity of wheat, which had cost him one 
hundred days' labor, for a quantity of silver which 
had cost the same amount of labor. The indi- 
vidual receiving the silver expects that he can ex- 
change it for other products which have cost one 

hundred days' labor. 

But, if in a few days silver could be produced 

What is the second requisite for a good circulating medium ? 



232 OF EXCHANGE. 

by one half the amount of labor that it formerly 
cost, the value of silver would fall, and he who 
had exchanged wheat for silver, would find that 
his silver would obtain for him, in exchange, pro- 
ducts which had cost only fifty days' labor. 

Hence, vegetable products, the amount of which 
is liable to vary under the same amount of labor, 
could never be employed as money. But gold 
and silver are not liable to these sudden fluctua- 
tions, and on this account they are better adapted 
for a circulating medium than any other articles. 

3d. If the article used should contain a large 
amount of value within a small bulk, it would be 
a great advantage, by thus saving the labor of 
transportation. The iron money of Lycurgus 
would be a very inconvenient circulating medium 
for the present day. 

4th. The substance should be capable of divis- 
ion without loss of value, in order that persons 
may purchase in as small quantities as they 
choose. 

5th. The substance should be of such a nature 
that it can be easily verified, and distinguished 
from counterfeit imitations. Platina is more 

Why might not vegetable products be employed as a circulating 
medium ? 

What is the third requisite for a convenient circulating medium ? 
The fourth? The fifth? 



OF EXCHANGE. 233 

costly than silver, but in appearance it very much 
resembles some of the baser metals, which is an 
objection to its use as a circulating medium. But 
gold and silver are easily verified, and counter- 
feit imitations are easily detected. We meet with 
no counterfeit gold coins, and wuth but little coun- 
terfeit silver money. 

And lastly, it may be remarked, that gold and 
silver are used as the instruments for facilitating 
exchanges, because they are the best and most 
convenient instruments for that purpose, and not 
because government has arbitrarily made them 
the circulating medium. As, under every gov- 
ernment, the people should have the liberty of 
making what exchanges they choose, the gov- 
ernment should not interfere with the instrument 
which the people have selected for this purpose. 

Any laws directing the people in what manner 
they shall use the instrument, money, is an inter- 
ference w4th the liberty of exchanging, the same 
as if government should direct the farmer to use 
his ploughs in a particular manner : this would 
be an interference with his right of cultivating 
the soil as he saw fit. 



Are gold and silver used as the circulating medium because 
government has arbitrarily made them such ? 

In what manner should government not interfere with the circu- 
lating medium? 

20* 



234 OF EXCHANGE. 

If one citizen wishes to purchase any articles 
of another citizen, he should have the liberty of 
exchanging as he pleases; or if he wishes to ex- 
change his specie for the products of a foreigner, 
government should not prevent him. 

And if it be admitted (as it certainly will be 
under a free government) that citizens have the 
right of keeping or exchanging their property as 
they please, it follows that government has no 
right to prevent the importation or exportation of 
specie. 

But there is one kind of agency which gov- 
ernment may properly exert over the circulating 
medium. Gold and silver being used as a circu- 
lating medium hy common consent, the agency of 
government should be exerted to render the cir- 
culating medium such as the people wish it, and 
so to prepare the substance employed that it may 
be used with the greatest common advantage. 

To accomplish this object, the substance which 
has been thus universally chosen for the pur- 
poses of exchange, should be made a legal tender 
for the payment of all debts. That is, if a debtor 
offer his creditor legal money in payment of a 
debt, the latter is bound to receive the same, or 
free the former from his obligation, unless some 

What agency, then, may government properly exert over it ? 



OF EXCHANGE. 235 

Other article had been previously agreed upon 
between the parties. 

Government should also regulate the coining 
of money, because it is a work that requires 
great fidelity, and could not be safely intrusted 
to individuals. 

The business of coining comprises whatever 
relates to the uniform purity of the metal, and 
to such size and form of the material as shall 
best adapt it to the purposes of exchange. 

But the power of government should never 
be exerted so as to interfere with the right of in- 
dividuals to exchange their property with any 
one and for any things as they may think for 
their advantage. 



II. Of the amount of money necessary to effect 
the exchanges of a community. 

Whatever be the instrument used in making 
exchanges, its value, at any one time of ex- 
change, must be equal to the value of all the 
commodities exchanged for it. 

Suppose the precious metals were the only in- 



Why is not the value of the precious metals in community equal 
to the value of all the other commodities ? 



236 OF EXCHANGE. 

struments used for this purpose. But yet the 
value of the precious metals in community is not 
equal to the value of all the other commodities. 

The value of the precious metals would be 
equal to the value of all the other commodities, 
if all exchanges were made in money, and made 
at the same instant. 

But only a very small portion of the commodi- 
ties once exchanged during a year, are exchanged 
at the same time. Consequently, a small amount 
of money, if used many times, may exchange a 
large amount of property. 

Thus, if A and B have each one thousand 
dollars worth of property to exchange with each 
other, ten dollars in the hands of either party 
may be sufficient to effect the exchange of two 
thousand dollars worth of property. 

Thus, A, having the money, may purchase of 
B ten dollars worth of his property, and B may 
then use the same money wherewith to purchase 
of A ; and thus, by one hundred mutual exchan- 
ges, the whole work would be accomplished. 

It is the same with the exchanges of commu- 
nity. A single dollar may perhaps in one year 



In what manner is a small amount of money made to exchange 
a large amount of property ? 

What kind of exchange furthermore diminishes the amount of 
money required ? 



OF EXCHANGE. 237 

be the instrument of exchanging values of a thou- 
sand times its amount. 

And, as many exchanges are made in hind, this 
also diminishes the amount of money required. 
Where wheat is exchanged for cotton, if the val- 
ues exchanged are equal, no money is required to 
accomplish the work. 

Between nations also most exchanges are made 
in kind. A nation that possesses no mines of the 
precious metals, can obtain the products of another 
nation only by its own labor, which must be em- 
ployed in the creation of some products which 
may be given in exchange. 

If, for instance, New -York purchase of Liv- 
erpool, New -York must eventually pay the debt 
in American products. If it pay Liverpool in 
gold and silver, these articles must previously 
have been obtained by sending American pro- 
ducts to some other nation. 

Thus, one nation cannot exchange with another 
to a greater amount than it has products to give 
in exchange ; and we see what it is that creates a 
demand for foreign products. 

The productiveness of one country opens a 
demand for the products of another. For it is 
the same with nations as with individuals : they 

How are exchanges made between nations ^ 



238 OF EXCHANGE. 

cannot purchase unless they have something to 
give in exchange. 

The prosperity or the adversity of one must, 
therefore, go hand in hand with the prosperity 
or adversity of another. Should the products of 
America fail, and famine desolate the land, Eng- 
land would find no market here for her manufac- 
tures ; nor, under such circumstances, could 
England escape the evils that afflicted us. 

The value of the specie used in any country 
for the purposes of exchange, is therefore neces- 
sarily small in proportion to the whole value of 
capital. In Great Britain, some writers have 
estimated it at the 50th, and others at the 127th 
part of the whole capital. 

But the amount of circulatins: medium re- 
quired in any community while its value remains 
the same, varies with the amount of products to 
be exchanged. While the amount of exchanges 
remains the same, the same value in specie will 
always be required, and no greater value can be 
used. If a greater amount of specie be intro- 



How is the prosperity of one nation allied with that of another? 

What estimates have been made of the relative value which spe- 
cie bears to other capital ? 

Upon what depends the amount nf circulating medium required 
in any community .' 



OF EXCHANGE. 239 

duced, its \'^lue will fall, and if the amount be 
diminished, its value will rise. 

It is the same with money as with other in- 
struments in other kinds of labor. If more 
ploughs be introduced than are necessary for 
agricultural purposes, their value will fall ; and, 
if the number of ploughs be diminished, their 
value will rise. 

Nothing is gained by introducing more ploughs 
than are needed, as they must be sent from the 
country, or they will remain on hand, unproduct- 
ive capital. And, if more money be introduced 
than is necessary for the purposes of exchange, it 
must either be sent abroad again, or remain on 
hand, unproductive capital. 

If the amount of production in a country be 
greatly increased in any one year, a greater 
amount of money will be required to make the 
necessary exchanges ; or, if the amount of money 
remain the same, its value will rise. 

But the very nature of the case will provide 
its own remedy : specie will be imported to sup- 
ply the deficiency, or the domestic products will 
be exported, unless there has been a correspond- 



What will be the effect of an increase of productiveness upon 
the amount required ? 
How will the want of money be remedied in this case ? 



240 



OF EXCHANGE. 



ing increase of productiveness throughout other 
nations. 

Let us suppose that there has been during one 
year a great increase of productiveness in the 
State of New- York alone, throughout all the de- 
partments of agricultural, manufacturing, and 
commercial industry. Every thing would now 
be cheap. If wheat were formerly sold for two 
dollars per bushel, it could now be obtained for 
one. 

Suppose that, in ordinary seasons, six bushels 
of wheat, or its equal in value, six dollars, could 
obtain a yard of broadcloth in Liverpool, and 
that it is immaterial to the New- York merchant 
which he sends in exchange. 

But, during this very productive season, the 
NeW'York merchant finds that six dollars and 
twelve bushels of wheat are of equal value in 
this country, but six bushels of wheat will obtain 
as much broadcloth in Liverpool as six dollars 
will purchase. 

The New- York merchant will now find it 
greatly for his interest to export wheat in ex- 
change for broadcloth, and the specie, which is 
now needed at home, will not leave the country. 

Thus, the want of money will soon be reme- 
died by the exportation of that superfluity of pro- 
ductions which has occasioned the want. 



OF EXCHANGE. 241 

This will be the case in every country, whenev- 
er an increase of productiveness creates a demand 
for money. 

Thus, the interest of the merchant, and of ev- 
ery other individual, is the same as the interest of 
the nation. What is favorable to the former, is 
also favorable to the latter. 

Also, if, during such a season, other nations 
wish to obtain our products, it v/ill evidently be 
for their interest to send specie in exchange, be- 
cause specie is scarce here, and products plenty; — 
specie is in the greatest demand, and v/e will give 
more for that than for any other article. 

It is also evident that an unproductive season 
w^ill render money comparatively more abundant 
than usual; — exchanges being less in amount, 
there \vill be less demand for the instrument used 
in exchanging. Money will therefore be cheap, 
and every thing else dear. We shall have more 
money than can be used in exchanging, and shall 
be in greater need of other products. 

But the nature of the case provides its own 
remedy. The New- York merchant now finds 
that tw^elve dollars and six bushels of wheat are 



What will be the effect of an unproductive season upon the 
amount of money required ? 
How will this case provide its own remedy ? 

21 



242 



OF EXCHANGE. 



of equal value to him in New-York, but the 
twelve dollars will obtain two yards of broad- 
cloth in Liverpool, while the six bushels of 
wheat will obtain only one. 

It is now for his interest to export the specie, 
and it is also for the interest of the whole coun- 
try. National and individual interests are the 
same. The same principles in political economy 
should regulate the management of the affairs of 
both. 

When, therefore, we speak of the abundance 
or scarcity of money, we are to understand by the 
terms, not the real amount of money in communi- 
ty, but the relative proportion which it bears to 
the products required to be exchanged. 

There is an abundance of money when there 
is more than a sufficiency for the purposes of ex- 
change — the same as a community has an abun- 
dance of vehicles for transportation when there is 
more than a sufficiency for transporting all its 
merchandise; but should its merchandise be in- 
creased, the same number of vehicles, which was 
before an abundance, might become a scarcity.* 



■- There is this difference, however, between the two 
cases : — If the amount of merchandise be increased, the 



What, then, are we to understand by tlie terms abundance and 
scarcity of money ? 



OF EXCHANGE. 



243 



Abundance of vioney, and scarcity of money, 
are, therefore, terms Avhich convey an idea of the 
relation, merely, that exists between the amount 
of money and the amount of products to be ex- 
chano^ed. 

A scarcity or an abundance of money may 
arise from various causes. It has been seen that 
an increase of productiveness renders money com- 
paratively scarce, and a diminution of productive- 
ness renders it comparatively abundant. The 
scarcity of money in the first case is, therefore, 
an indication of prosperity, and the abundance of 
money, in the second case, is an indication of ad- 
versity. 



same number of vehicles cannot accomplish the whole 
work of transportation. 

But if a million of dollars were required to effect the 
exchanges of a country, during one season, and the 
amount of products to be exchanged should be doubled 
during the next, the same amount of money might be 
made to do all the work of exchanging. 

But the value of money must rise to twice its original 
amount. If one dollar were formerly exchanged for a 
bushel of wheat, it must now be exchanged for two. The 
inconvenience that arises from this relative scarcity of 
money, results from the difficulty of accommodating ex- 
changes to this new state of things. But, after this state 
of things had become permanent, there would be no more 
difficulty in the way of exchange than formerly. 



From what various causes may a scarcity or an abundance of 
money arise ^ 



244 OF EXCHANGE. 

An abundance of money may be occasioned by 
the discovery of a new mine; and if the cost of 
mining be not too expensive, the abundance of 
money thus occasioned will be an advantage to 
the nation. But it can be of use only by being 
sent abroad in exchange for other products, if 
there w^ere previously sufficient money in com- 
munity for the purposes of exchange. But if gold 
and silver should^ become as abundant as iron, 
they Avould lose all value as money. 

A scarcity of money may also be occasioned 
by an unproductive consumption of value ; as, if it 
be employed in useless wars : and here it is a sign 
of adversity. Therefore, the relative abundance 
or the relative scarcity of money, is by no means 
an unfailing indication of the prosperity or ad- 
versity of a country. 

An abundance may be the sign of prosperity 
in one case, and of adversity in another. The 
only sure indication of the economical prosperity 
of a country, is the increase of its productiveness. 



Is either a scarcity or an abundance of money any certain indi- 
cation of either the prosperity or adversity of a country .'* 
What is the only sure indication of a country's prosperity? 



OF EXCHANGE. 245 



III. Of Banks of Deposit and Exchange. 

We have seen that exchanges are greatly fa- 
cilitated by means of the use of a metallic curren- 
cy. But if an individual were to give gold and 
silver in exchange for whatever he purchased, if 
he were engaged in extensive business, he would 
be obliged to keep constantly on hand a great 
amount of the precious metals, in order to effect 
his exchanges. 

This would be so much withdrawn from his 
productive capital; and if, by any means, he could 
diminish the amount, and effect his exchanges 
with a less sum, he might, to the whole extent of 
this contraction, enlarge his business and increase 
his sources of wealth. 

If a manufacturer worth fifty thousand dollars 
were obliged to employ ten thousand of it in ef- 
fecting his exchanges, it is evident that he could 
invest in his business only forty thousand. But 
if, by any means, he could effect all his exchan- 
ges with one thousand dollars, he could then em- 
ploy in his business forty-nine thousand dollars of 
productive capital. 



What would be the effect upon the amount of one's productive 
capital if be were obliged to effect all hia exchanges with specie* 

21* 



246 OF EXCHANGE. 

Another inconvenience that the manufacturer 
would encounter, is the time and labor lost in 
transporting a great amount of gold and silver. 
If this also could be avoided, it would be a mani- 
fest advantage. And were all exchanges made 
through the medium of money, each payment 
must be counted by both parties, which would 
occasion a loss of time, and a wear and tear of 
the coin. 

Although this may be deemed a trifling incon- 
venience and loss, yet it would be very percepti- 
ble in a large mercantile house w^hich exchanges 
from fifty to one hundred thousand dollars worth 
in a day. 

And were each individual to keep constantly 
on hand the whole amount of gold and silver 
necessary to effect his exchanges, he would be 
exposed to frequent robbery, and would be obliged 
to guard his property with increased vigilance. 
Gold and silver are bulky and noisy, and conse- 
quently difficult of concealment. Since the insti- 
tution of banks, robberies have been far less fre- 
quent than formerly. 

The evils above mentioned have been, in a 
measure, remedied by the institution of banks. 

What are the several other inconveniences that would attend 
exchanges by an exclusive metallic currency ? 
How have these evils been, in a measure, remedied ? 



OF EXCHANGE. 247 

We shall proceed to consider the nature and uses 
of banks, and the benefits which they confer upon 
community, when properly conducted, and also 
the evils and abuses to which they are liable. 

The banks first instituted were those of deposit 
and exchange. They are the most simple in 
their plan and in the nature of their operations. 
Individuals, instead of keeping their money on 
hand, deposit it with an individual or with a 
company for safe keeping. 

Thus, suppose that the merchants in a place, 
instead of keeping their money themselves, lodged 
it with a company in whom they had implicit 
confidence, and that this company established a 
bank where they might receive the money, and 
conduct the business relative to its deposit and 
transfer. The bank would now open its books, 
and keep an account with each person depositing 
money, crediting him with whatever he deposited, 
and debiting him to whatever he withdrew. 

Let us now see how the business of exchange 
might be conducted in such a community. If A 
owed B one thousand dollars, he need not with- 
draw that amount of his money from the bank in 



What was the first kind of bank instituted'? 
Describe how exchanges would be effected by the aid of a bank 
of deposit and exchange. 



248 OF EXCHANGE. 

order to make the payment, but he may give B 
an order for one thousand dollars, which B will 
present to the banker, and the one thousand dol- 
lars will be transferred from the account of A to 
that of B. If B owe C, he may make his pay- 
ment in the same manner ; C may do the same 
to D; and D perhaps may owe A, and pay him 
in the same manner. 

And thus, at the end of the day, exchanges to 
the amount of four thousand dollars may have 
been effected without any transportation or count- 
ing of the specie. It has been the labor of a few 
minutes, and has all been accomplished by wri- 
ting a few lines in a bank leger. 

There has been a saving of the transportation, 
counting, and consequent wear and tear of the 
coin ; and, also, the expenses of guarding and se- 
curing the money have been materially lessened.* 



*■ We shall hereafter see how the institution of another 
kind of bank, lessens the amount of the precious metals 
required to effect the exchanges of a community, and by 
that means renders available a greater amount of produc- 
tive capital. 

But a less amount of money is required to effect ex- 
changes between individuals, than may be at first ima- 
gined, and banks of deposit, in a measure, diminish that 
amount, although not to the same degree as banks of cir- 
culation and issue. 

An individual can purchase only by the disposal of 
some values of his own production. All purchases, 



OF EXCHANGE. 249 

And if the exchanges of a community were 
transacted by several banks, they would be con- 
ducted upon the same principles, without the ne- 
cessity of a transfer of the money deposited. 

Suppose that A, B, C, and D, have business 
with each other, which requires a transfer of 



therefore, are merely exchanges of the products of one 
man for those of another, and one man cannot purchase 
to a greater amount than he has, or is supposed to have, 
products to give in exchange. 

If, then, each individual exchanged directly for the ul- 
timate article desired, and there were no need of first ob- 
taining any thing intermediate, with which to procure it, 
there would be no need of money in any exchange what- 
ever ; for every man sells as much as he buys, and this 
would be merely barter. 

But, when one man purchases of another fifty dollars' 
worth of products, in one day, and parts with only twenty- 
five dollars' worth of his own, he requires something 
more to make the exchange : he must pay the difierence 
in money. 

But, if the second individual will not receive the pro- 
ducts of the first, the former will need fifty dollars to 
make the exchange. Thus, an individual may be obliged 
to make all his purchases with money, which will require 
a large amount of the precious metals, although, at the 
end of the year, his purchases may not exceed his sales. 

He has, finally, exchanged product for product, although 
he has been obliged to use an instrument, mone^ , to ac- 
complish the work. Now, a bank of deposit and ex- 
change may, in a great measure, supply the place of this 
instrument, money, and at a far cheaper rate. The indi- 
vidual may deposit in the bank a small sum of money, 



Describe the manner in which exchanges would be effected be- 
tween several banks of this kind. 



250 OF EXCHANGE. 

property; suppose that A and D have deposited 
their money in the first bank, B and C in the 
second. If A is to pay B a thousand dollars, he 
gives him a draft, check, or order on the fir^t 
bank, which B deposits in the second bank. C 
pays D in a draft on the second bank, vt^hich D 
deposits in the first bank. 

Each bank is thus to receive a thousand dol- 
lars, and to pay out a thousand dollars. The 
drafts cancel each other, and thus the transaction 
is completed. It would have been useless to have 
transported the money back and forth in this 
case, yet it must have been done had there been 
no banks or similar institutions to transact the 
business. 

If the exchanges were between distant places, 

equal to the excess, if any, of his purchases above his 
sales during a day, a week, or a longer period. 

If, now, the bank transact the business of exchange be- 
tween the parties, and the accounts be settled at the close 
of each week, an amount of money equal to the difference 
of the exchanges between the parties would meet every 
emergency. Each person might, therefore, employ a 
greater portion of his capital in active business, and the 
active capital of community would, therefore, be greatly 
increased. 

But banks of discount and loan, and of circulation and 
issue, more fully and more conveniently accomplish the 
same object, and have now almost entirely superseded the 
use of banks of deposit and exchange. 

Describe the manner in which exchanges are usually effected 
between distant places, such as New- York and Liverpool. 



OF EXCHANGE. 251 

as between New- York and Liverpool, the saving* 
of time and labor by this method of exchange 
would be still greater. Suppose that A in Liver- 
pool sells to B in New-York ten thousand dol- 
lars' worth of broadcloths, and that C in New- 
York sells to D in Liverpool ten thousand dol- 
lars' worth of cotton ; A is entitled to demand ten 
thousand dollars from B, and C to demand the 
same amount from D. A now writes an order 
to B, ordering him to pay ten thousand dollars 
to the bearer, or to some person mentioned. D 
gives A ten thousand dollars for this order, and 
transmits it to C, who receives it in payment of 
the debt due him from D; C then carries this 
order to B, or to his banker, and receives for it 
ten thousand dollars. Thus all the payments 
have been made without the transfer of any specie. 
Banks usually conduct this business. 

In the case supposed above, D might not have 
known to whom to apply for the "order;" but if 
all the merchants in Liverpool who had demands 
on the merchants in New- York, should deposit 
their orders or written demands with a certain 
bank, the purchasers would know where to apply, 
and the bank might conduct the business between 
the sellers and purchasers. 

Of what assistance are banks in this transaction ? 



252 OF EXCHANGE. 

But we have supposed that the exchanges be- 
tween the two places were equal. Now, suppose 
that New- York should purchase of Liverpool 
products to the amount often millions of dollars, 
and should sell to her products to the amount of 
only ia\e millions in return. In some way New- 
York must pay the difference. If she send specie 
in exchange, she must first have obtained the spe- 
cie from some other quarter by an exchange of 
her products, for there is no other way by which 
she could have obtained it. 

Or New- York might perhaps send wheat to 
Cuba, and obtain in exchange sugar or cotton, 
which might be transmitted to Liverpool, sold, and 
the proceeds deposited in a bank in Liverpool. 
Then the merchant, who owed a debt in Liver- 
pool, would send to his creditor a draft or order 
upon the bank ; the money, previously deposited 
there by the sale of the sugar and cotton, would 
be given in exchange for it, and thus the debt be 
cancelled. 

These "orders" for the payment of money be- 
tween different countries are called bills of ex- 
change, or foreign bills of exchange, in distinc- 
tion from inland bills of exchange. They greatly 



Now, suppose that the exchanges between the two places wera 
unequal, how will the difference be paid! 



OF EXCHANGE. 253 

facilitate commerce or the exchanges between 
different nations, as we shall see by inquiring 
more particularly into their nature and origin. 

A bill of exchange is an open letter of request, 
or an order from one person to another, desiring 
the latter to pay, on account of the former, a sum 
of money therein mentioned to a third person. 

Thus, if A in New- York have owing him 
from B in Liverpool ten thousand dollars, and 
C in New- York be going to Liverpool to pur- 
^chase goods, A may draw a bill of exchange on 
B ; that is, request him to pay ten thousand dol- 
lars to C. A thus assigns the debt due him to C ; 
C pays A for this bill, and carries his money 
over to Liverpool in paper credit, without the risk 
of robbery or loss. For although this bill should 
fall into the hands of another person, it would not 
T)e paid without the authority of C w^ritten upon 
lit for that purpose. 

The person w^ho draws the bill is termed the 

idrawer ; he to whom it is addressed, is, before 

^acceptance, called the drawee, and afterwards the 

acceptor. The person in whose favor it is drawn 

iis termed the payee, or the one to whom the 



What is a bill of exchange ? 
How are payments of money made by them? 
Who is the drawer- of a bill of exchange .'' The drawee ? The 
acceptor? The:payee? The endorser? The endorsee? 

22 



254 OF EXCHANGE. 

debt is made payable ; and when he endorses the 
bill, or transfers his right in it to another, he is 
called the tiidorser, and the person to whom he 
transfers it is called the endorsee or holder. 

Bills of exchange were probably first invented 
among merchants for the more easy and safe re- 
mittance of money from one to the other in differ- 
ent countries; but since the great increase of 
commerce, they have become equivalent to spe- 
cie, and thereby greatly facilitate commercial 
transactions. 

Thus, a merchant in New- York may have 
present need of ten .thousand dollars wherewith 
to purchase goods in Liverpool, but may not have 
ready money to that amount, but a Liverpool 
merchant may owe him ten thousand dollars, 
payable in six months from this time. 

The New-York merchant now draws a bill of 
exchange on his debtor, payable at six months 
after date, and gives this in security for the goods 
which he purchases ; and the one of whom he ob- 
tains the goods may, in his turn, obtain goods on 
the credit of this bill of exchange ; and thus the 
bill may have the same effect in different hands, 



By whom and for what purpose were bills of exchange probably 
first invented ? 
In what manner are they made to answer the purposes of money ? 



OF EXCHANGE. 255 

and be transmitted by endorsement or otherwise. 
It thus answers the purpose of money. But the 
credit of the person on whom the bill is drawn 
must be good, or the bill will not be thus received. 

When one country has purchased of another 
a greater amount of products than has been sent 
in return, there arises a demand for bills of ex- 
change wherewith to pay the debt. If the New- 
York merchants have imported cloths from Liv- 
erpool to the amount of two millions of dollars, 
and have sent in return products to the amount of 
only one million, there will arise a demand for 
bills of exchange upon Liverpool. 

Perhaps Liverpool may be indebted to Paris, 
and Paris to New- York. In this case New-York 
will receive her pay from Paris in bills of ex- 
change upon Liverpool, and send these bills to 
Liverpool in payment of the debt due there. Thus, 
New- York pays Paris, and Paris pays Liver- 
pool. 

This is an accommodation to all parties, who 
make their payments without the transmission of 
any specie whatever, which is a saving of the 
cost and risk incurred by transportation. It is 
credit that is transferred, and not money. 



Under what circumstances would there naturally arise a demand 
for bills of exchange upon Liverpool or any other place ? 



256 OF EXCHANGE. 

Thus, bills of exchange become articles of mer- 
chandise as much as any thing else, and are ne- 
gotiated, to a considerable degree, by banking 
institutions, and by men who devote themselves 
to the buying and selling of exchange. 



SECTION III. 

OF EXCHANGE BY MEANS OF A PAPER 
CURRENCY. 

I. Bajiks of Discount or Loan, and of Circula- 
tion or Issue. 

There is another kind of bank founded on prin- 
ciples materially different from banks of deposit 
and exchange. Banks of deposit are now, in- 
deed, nearly obsolete, and are suited only to the 
early stages of commercial prosperity, and are 
liable to many inconveniences. 

The common process of banking offers all the 
advantages possessed by banks of deposit and 
exchange, except, perhaps, that of security; the 



By whom are bills of exchange principally neffotiated? 
What other kind of bank remains to be considered ? 



OF EXCHANGE. 257 

banks now established possess a greater degree 
of utility, are more convenient, and far less ex- 
pensive. 

Many objections, however^ have been urged 
against them, and some very justly, considering 
the manner in which they have often been con- 
ducted* 

We shall examine the principles upon which 
they are instituted, and the manner in which they 
are designed to operate, and leave the reader to 
judge how far the defects complained of are in- 
herent in their nature, and how far they arise 
from a fraudulent and remediable abuse of their 
privileges. 

Banks in this country are chartered incorpora- 
tions, which are created by the legislatures of the 
States, under such restrictions and regulations as 
the legislature may impose. Persons wishing to 
be incorporated as a banking company, present a 
petition to the legislature of the State in which 
they reside, praying for such privilege. 

If the petition be granted, they are thus incor- 
porated, and the amount of capital designed to be 
employed in the banking transactions is fixed in 
the act of incorporation. 

What is said of the objections urged against them, and the man- 
ner in which the subject will be treated? 
What are banks in this country, and how creeUed .' 

22* 



258 



OF EXCHANGE. 



This sum is divided into shares, or equal por- 
tions, of such amount as may be supposed best 
suited to the wants of the community ; and at a 
given time and place, publicly notified, books for 
subscription are opened, and every one is allowed 
to subscribe for and purchase as many shares as 
he wishes, until the shares are all disposed of. 

The subscribers or purchasers are called stock- 
holders, and the shares are called stock. 

The stockholders then meet, and choose from 
their number certain persons to conduct the oper- 
ations of the bank, Avho are called directors ; and 
the whole of these together are called the hoard 
of directors. 

The directors then choose from their number 
a ^president, and a person not of their number^ as 
cashier. 

The board of directors meet at stated times to 
direct the general affairs of the bank ; but the ac- 
tive duties of the bank devolve upon the presi- 
dent and cashier. 

When the bank is thus organized, those who 
have subscribed for stock are required to pay to 
the cashier the sums for which they have sub- 
scribed. The bank is then ready to commence 
operations. 

What is their manner of operation ? 



OF EXCHANGE. 259 

The bank loans its own bills, redeemable in 
specie, to those who wish to borrow, and receives 
the notes of individuals, of equal amount, in re- 
turn, and charges them interest on the amount 
loaned, which is paid in advance. 

The payment of the bills loaned is usually 
guarantied by some other person or persons, call- 
ed endorsers. So that, if those who borrow mo- 
ney of the banks fail to pay, the debt is collected 
of the endorsers. The ordinary period of loan 
is thirty or sixt}^ days, at the close of which time 
the notes may be required to be paid; and the 
bank may thus, if it chooses, close its business 
within sixty days, and remain as it was when it 
commenced, w^ith the exception of the interest 
obtained by its loans. 

Let us now see w^hat guarantee the bank pos- 
sesses for the redemption of its bills. 

Suppose that the capital of the bank were one 
hundred thousand dollars, and that this amount 
had actually been paid in, in specie, by the stock- 
holders. If now the bank issue bills merely to 
the amount of its capital, it will have more than 
a double guarantee for their redemption. For it 
will have specie equal to the amount of bills 

What guarantee does the bank possess for the redemption of its 
bills, if it loan merely to the amount of its capital ? 



260 OF EXCHANGE. 

loaned, and will also hold the notes or securities 
of individuals to the same amount. 

This will now be a double security for the re- 
demption of its bills. But, in addition to this, it 
has also the interest on the sum loaned, which 
has been paid in advance. It has, therefore, 
more than a double security for the redemption 
of its bills. 

It is therefore evident, that the bank may issue 
bills to a greater amount than it has specie, and 
still be able to redeem all its bills, if its securities 
are good. 

Therefore, in the charters which they receive 
from the legislature, they are allowed to issue 
bills to a greater amount than they have specie, 
and the extent of this amount is fixed in the act 
of their incorporation. Banks are usually allow- 
ed to issue bills to twice or three times the amount 
of their capital. 

But the bank pledges itself to redeem its bills 
in specie, on demand, and in failure of so doing, 
forfeits its charter, — in other words, the bank 
breaks. 

Now, there is a possibility that the bank may 
be broken while it is perfectly solvent, — that is, 

To what extent, then, may banks be allowed to issue bills ? 
How does a bank pledge itself to redeem its bills? 
How may a bank be broken while it is perfectly solvent ? 



OF EXCHANGE. 261 

while the available debts due it are greater than 
the debts that it owes. For example : the capi- 
tal of a certain bank is one hundred thousand dol- 
lars, and it has loaned bills to the amount of three 
hundred thousand dollars, for the period of sixty- 
days. 

For the three hundred thousand dollars of its 
bills in circulation the bank has good security to 
that amount, together with its capital of one hun- 
dred thousand dollars ; but the securities are not 
available until the expiration of sixty days. If, 
at the expiration of that period, the borrowers of 
the bank's money fail to pay their debts then due, 
the bank may take the property secured to it, to 
the full amount of such debts. 

But if the whole amount of these bills should 
be returned to the bank within thirty days after 
their issue, and specie should be demanded for 
them, the bank would not have wherewith to meet 
the demand. And the bank failing to fulfil its 
promises to redeem all its bills in specie, must 
therefore break, although at the expiration of the 
sixty days it might still be able to redeem all its 
bills, if not in specie, at least in valuable proper- 
ty to that amount. 

The cause which so lately (in 1837) obliged 

Why were the banks in this country obliged to suspend specie 
payments in 1S37 ^ 



262 



OF EXCHANGE. 



the banks in this country to suspend specie pay- 
ments, was the sudden presentation of their bills, 
and the demand for specie, while no time was al- 
lowed them to collect their debts, and redeem their 
bills with the securities which they held. 

But in ordinary times there is no danger that 
the bills will be returned for specie so suddenly. 
And if the loans of a well-conducted bank do not 
exceed sixty days, it can within that time compel 
the payment of its debts, call in its loans, and 
leave no demands against it, while its capital re- 
mains untouched. For those who borrow the 
bills of the bank, must repay them at the expira- 
tion of the time for which they were loaned — 
either in specie, in the bills of the same bank, or 
in the bills of other specie-paying banks. 

In the two former cases, the bank calls in its 
own bills, or specie sufficient to meet them ; and 
in the latter case, it may exchange other bills for 
its own, or for the specie of the banks that issued 
them. And thus none, or only a few, of its bills 
will be left in circulation, and the demands that 
can be made for specie will be quite trifling. 

Thus, any well-conducted bank may, in a short 
period, wind up its concerns, redeem its promises 



Howmay a bank usually place itself on a safe footing within a 
short period ? 



OF EXCHANGE. 263 

to pay its bills in specie, and place itself upon a 
perfectly safe footing. And this, also, although it 
has baned bills to three times the amount of its 
capital 

The same might have been accomplished by 
the banks generally throughout the United States 
in 1837, if they had been allowed the short peri- 
od of sixty days; at the expiration of which time 
they might have called in all their bills. 

But the remedy would have been far worse 
than the evils incurred by a temporary suspen- 
sion of specie payments. To remove such an 
amount of the circulating medium of the country, 
would have been a blow as fatal to commerce, as 
to the farmer would have been the destruction of 
his implements of husbandry.* 



* But a .bank never issues its bills gratuitously ; and 
even if it have no funds of its own, these bills imply, in 
the coffers of the jfeank, a value of like amount, either in 
the form of specie, or of valuable securities bearing in- 
terest. 'So long, therefore, as the business of the bank is 
well administered, supposing a total failure of confidence 
to bring all its notes upon it at once for payment, the 
worst that can happen to the holders, is to be paid with 
the same bills or securities whereon the bank issued its 
notes. And if the "bank have a capital of its own, there 
is so much additional security. 



What would have been the effect if the banks, in 1837, had with- 
drawn their bills from circulation, in order to render themselves 
«ecure i 



264 OF EXCHANGE. 

. We see, then, that well-regulated banks may 
safely, in ordinary times, issue bills to a greater 
amount than they have capital ; and the extent of 
their capital need be no more than sufficient to 
redeem every bill as soon as presented, and, be- 
sides, to guaranty the holders of its bills against 
any injury that the bank might suffer from a fail- 
ure of its securities. 



II. Of the Sources of the Profits of Banks, 

1st. From deposits. Individuals frequently de- 
posit money w\\\\ a bank for safe keeping. The 
bank then uses this money as its own, upon which 
it receives considerable profits. Thus, if a bank 
have fifty thousand dollars of deposits, it may 
consider this as a portion of its capital, and issue 
bills upon it to perhaps twice or thrice its amount. 

2d. By negotiating and exchanging drafts and 
bills of exchange, &c. Thus, A, at Buffalo, 
wishing to send a thousand dollars to B, in New- 
York, gives one thousand dollars to a Buffalo 
bank for its draft to that amount, which is a re- 
quest to some bank in New- York to pay on de- 



What should be the extent of capital possessed by banks gener- 
ally ? 
What are the several sources of the profits of banks? 



OF EXCHANGE. 265 

mand one thousand dollars to B. This draft is 
then sent to B, who receives the money by pre- 
senting the draft at the bank. 

And if a person in New- York wishes to send 
money to Buffalo, the business is transacted in 
the same manner. 

And it is evident, that if the exchange of drafts 
between the two places were equal, there need be 
no transmission of money. This is a safe and 
convenient way of making payments in distant 
places ; and the banks charge a certain per cent- 
age for transacting this business, from which a 
portion of their profits is derived. 

3d. The chief source from which a bank de- 
rives its revenue, is its regular loans. The bank 
receives interest on all the notes that it issues, and 
the amount of these notes may be twice or thrice 
that of the capital of the bank. 

There would, however, be little or nothing 
gained by banking, if banks were allowed to is- 
sue notes only to the amount of their actual capi- 
tal ; for although they received interest on their 
notes, interest to the same amount would lay dor- 
mant in the specie withdrawn from circulation. 



23 



266 OF EXCHANGE. 

III. On the utility of Banks. 

In treating of the utility of banks, as a distinct 
subject of consideration, there can be little more 
than a repetition of the principles which have 
already been advanced. 

It has been seen, that in a state of barter ex- 
changes are difficult, and few in number. The 
use of money as a labor-saving instrument, in- 
creases the number and convenience of exchan- 
ges. Banks are more complicated instruments, 
or labor-saving machines, designed to accomplish 
the same object. 

A proper estimate of the utility of such insti- 
tutions, when well conducted, can be derived only 
from an intimate acquaintance with the varieties 
and magnitude of commercial transactions ; from 
a knowledge of the peculiar adaptation of the 
machine to the purposes for which it is designed; 
and, finally, the application, to this knowledge, of 
established principles in political economy. 

But the ■princi2)les upon which commercial 
transactions are conducted, are few and simple. 



What is said of the utility of banks ? 

For what are banks designed ? 

How only can a proper knowledge of their utiUty be obtained ? 

What is said of the principles of commercial transactions ? 



OF EXCHANGE. « 267 

and easy of comprehension, and may be gathered 
mostly from the preceding parts of this work 
which treat of Production and Exchanges. 

The nature of banks, and the principles upon 
which they are conducted, have been examined 
as far as the limited extent of this work would 
permit; and perhaps the auplication of principles 
already established, would remove any necessity 
of considering this subject further in detail. But, 
to render the subject somewhat plainer, we will 
briefly advert to a few of those principles which 
may be deduced from the previous portion of the 
chapter on exchanges. 

In reference to the utility of banks as institu- 
tions of deposit, it is sufficient to advert to their 
saving of the labor of transportation, of counting, 
and of vigilance, which has already been exam- 
ined under the article, " Banks of Deposit and 
Exchange." Although banks of deposit are now 
nearly obsolete, yet all their advantages are re- 
tained in the banks of the present day. 

The utility of banks as institutions of discount^ 

^ Discounting a note or bill, is merely the advance of 
its present value before it becomes due. Thus, if A holds 

What of the utility of banks as institutions of deposit and ex- 
change .'' 
From what is the utility of banks of discount derived ? 
(What is meant by discounting a note ?) 



268 OF EXCHANGE. 

and loan, or of circulation and issue, is derived, 
not from their adding- any thing directly to the 
capital of a country, but from their rendering the 
existing capital much more productive. 

This object is accomplished in several ways. 
Banks collect together and render productive a 
large amount of capital that would otherwise be 
scattered and useless. Small sums in the hands 
of laborers, widows, minors, and aged persons, 
which would otherwise often be thrown away in 
folly and dissipation, are now safely deposited in 
banks, which allow the depositor a certain rate of 



a note of one hundred dollars, due twelve months hence, 
and wishes the money at the present time, B, perhaps, 
will discount the note for him. 

A transfers the note to B, in consideration that B will 
now advance him the jjreseni value of the note. That is, 
B gives A in exchange for the note, not one hundred dol- 
lars, but such a sum as, put at interest at the given rate, 
would, at the expiration of a year, amount to one hun- 
dred dollars. 

Thus, banks discqunt commercial paper, bills of ex- 
change, &c. If a bank discount a bill of exchange, it 
gives its own mone)^ in return for the bill — subtracting 
therefrom the discount. The bank then collects the full 
amount of the bill, when it becomes due. 

Where a bank discounts a note or bill of exchange, it is 
in eftect loanin;2: its own money, and receiving in securi- 
ty the note or bill payable on a future day. 



In what differf^nt ways do banks render the capital of a country 
more productive .'' 



OF EXCHANGE. 269 

interest, and still make a profit to themselves. 
Thus, a larger amount of capital is engaged in 
active production, by which not only the owners 
of capital thus rendered useful, but also the bank's 
and the country at large are benefited. 

Banks also render the capital of a country far 
more productive by the facilities which they af- 
ford for the extension of credit. For example, 
a merchant in one of the western States wishes to 
purchase a new stock of goods to the value often 
thousand dollars, but cannot command that amount 
of money at the present time. 

But he perhaps owns twenty thousand dollars 
of valuable property. He now goes to a neigh- 
boring bank, and, by mortgaging his property as 
security, obtains the loan of ten thousand dollars, 
with which he goes to New- York or New-Or- 
leans and makes his purchases, and after the sale 
of his goods is enabled to return the bank w^hat 
he borrowed, and retain a profit to himself 

And if the merchant be a poor man, but be hon- 
est, skilful, and industrious, he may probably bor- 
row money of the bank on the security of other 
individuals. Banks afford the same facilities not 
only to merchants, but to ail business men who 

How do banks atford facilities for the extension of credit ? 
23* 



270 OF EXCHANGE. 

are able to give security for the sums borrowed. 
For the use of this money, the borrowers pay 
the banks a certain amount of interest. And it is 
much cheaper to the borrov/er — to the merchant, 
for instance — to obtain credit from the banks than 
from the importer of whom he obtains his goods. 
For the importer, fearful that he may lose, either 
by the want of skill or fidelity in his debtor, char- 
ges him considerably higher for his goods than 
he would charge if he sold them for cash. He 
has both a cash and a credit price for his goods. 

But if the merchant could pay cash for his 
goods, he could not only obtain them cheaper, but 
the importer could afford them cheaper; for if the 
latter can receive cash for his goods immediately 
on their sale, he also is enabled to purchase his 
goods cheaper, for he thus obtains them of the 
foreigner at a cash instead of a credit price. 

And thus, by the extension of credit which the 
banks afford, there is a benefit to the whole com- 
munity. But it may be said, if there were no 
banks, individuals would loan money in the same 
manner as banks now do. 

In the first place, they would have much less 



Why is it the cheapest to a borrower to obtain credit from banks 1 
How does this credit system benefit the whole community ? 
What inconveniences would arise if private individuals were the 
only money lenders .'' 



OF EXCHANGE. 271 

to loan, for they could loan gold and silver only, 
as the paper of private, unknown individuals, 
would not be received at a distance from home. 
They could never loan credit as extensively as 
banks. 

And again, after the trouble of finding a capi- 
talist, he might be timid and suspicious; unac- 
quainted with the business and character of the 
borrower, his risk of loss would often be great; 
the rate of interest would consequently be high ; 
and there would be, on the whole, but little dispo- 
sition on the part of the capitalist to part wath the 
immediate control of his means. 

But the many inconveniences that would result 
from this system of loaning, are too obvious to 
need enumeration. 

But it has been seen that banks may issue 
notes to a greater amount than they have specie, 
and yet be safe to the community. These notes 
answer the same purposes as specie in exchang- 
ing commodities ; consequently the result is the 
employment of a cheaper instrument for facilita- 
ting- exchano-es. 

o o 

But as only a certain amount of value is re- 
quired to effect the exchanges of a community, if 



While bank notes answer the same purpose of exchange as spe- 
cie, how do banks increase the productive capital of a country ? 



272 OF EXCHANGE. 

more money be put in circulation its value will 
diminish, and vice versa; and the paper money 
that is issued being redeemable in silver, its value 
is still equal to the silver money. 

But if there be an increased amount of this 
money, its value will be lower here than abroad, 
and a dollar will obtain more abroad than it will 
purchase at home. But as the specie only is of 
any value abroad, specie alone will be exported. 

Suppose that half the specie could be exported 
w^ithout impairing the currency at home, this ex- 
port, then, would be, to its full amount, so much 
gain to the productive capital of the country, for 
it would procure in exchange an equal amount of 
other capital. 

The advantages, therefore, of having a portion 
of the currency of the country in paper money, 
redeemable in specie, are, first, its greater conve- 
nience in exchange; and, secondly, it enables us to 
use a cheaper instrument instead of a dearer, and 
to employ the amount of the difference between 
the cost of paper money and specie in the various 
operations of human industry. 



What, then, are the advantages in having a portion of the cur- 
rency in paper money, redeemable in specie ? 



OF EXCHANGE. 273 

IV. Of the disadvantages of Banks, 

Banks are liable to forgery, fraud, and fluc- 
tuation. 

1st. Bank paper is liable to forgery, and those 
who have counterfeit notes imposed upon them 
must bear the loss. The security from signa- 
tures is small. The greatest security is in the 
excellence of the engraving, for an ordinary artist 
can very accurately counterfeit a bad engraving, 
but only the best artists can accurately counterfeit 
a good one. Banks should employ the best artists 
in the execution of their bills, for they are probably 
under the fewest temptations to engage in coun- 
terfeiting. It is true that coin may be counter- 
feited, but the process is much more difficult and 
expensive, and false coin is easily detected. 

2d. The transactions of banks may be fraudu- 
lently conducted by their officers, and thus expose 
the community to a loss, if they have no other 
security than the integrity of bank directors. But 
the system of banking may be so regulated by 
wise legislation, that there will be little danger to 
the community from this source. 

What are the disadvantages of banks .^ 

What is the danger from forgery, and in what manner best 
avoided ? 

To what danger is community exposed from fraudulent transac- 
tions of banks.'' 



274 OF EXCHANGE. 

3d. There is, however, one disadvantage to 
which paper money is greatly exposed : it is 
liable to sudden and great fluctuations in value. 

If a certain number of dollars be necessary to 
accomplish the exchanges of a community, and 
twice this number be introduced, the price of 
money will fall one half; that is, if five dollars 
were given for a barrel of flour before, ten dollars 
will be given now. 

The so.me value will be given in both cases, but 
not the same nominal amount. And if half the 
quantity were removed, the reverse would be the 
case. 

Therefore, if banks suddenly increase their 
loans, that is, issue a great amount of paper 
money, while there are no more exchanges to be 
made than before, the price of money will fall ; 
that is, a dollar wall not obtain as great an amount 
of other commodities as it could obtain previous 
to this excessive issue of notes. 

Suppose that before this excessive issue of bills 
a laborer could have obtained a bushel of wheat 



What is the principal disadvantage to which paper money is 
exposed .^ 

How are fluctuations in the vah.ie of money occasioned .'' 

What is the eifect of a sudden increase of bank paper while 
exchanges remain the same ? 

How may the wages of labor be affected by this increase ? 



OF EXCHANGE. 275 

for a day's work, and that he had labored twenty- 
days for a farmer, and received for his services 
twenty dollars, expecting to obtain for his money 
within a few weeks twenty bushels of wheat. 
But in the mean time money becomes much 
more plenty, on account of the vast amount of 
paper money put in circulation by the loans of 
the banks — the price of money consequently 
falls, and the laborer can now receive perhaps 
only ten or fifteen bushels of Vv^heat for his twenty 
dollars. The difference is a total loss to the la- 
borer.* 



a But, it may be remarked, — banks are not very liable 
to make extensive loans, unless the icants of community 
require it. If there be an increase of productiveness 
throughout the country, and consequently more com- 
modities to be exchanged, then it is an advantage to have 
the amount of money increased proportionally to the 
greater amount of exchanges required to be made. But, 
if money be increased beyond this amount, and if the 
amount at one time necessary still remain the same, 
while the number of exchanges has diminished, it is 
then attended with evil to the community. 

But, while the nmnber and amount of exchanges are 
increasing, there will naturally be a demand for more 
money, and the banks will keep the supply equal to the 
demand; and, when exchanges diminish, the loans of the 
banks will naturally be contracted. For they cannot is- 
sue bills unless there is a demand for them. 

But, at times the spirit of speculation rages throughout 
community, and the nominal value of property rises im- 
measurably high. The same amount of money is re- 
quired to exchange nominal as real value. There is 
then an unnatniral demand for money, and the banks is- 



276 OF EXCHANGE. 

Various causes may occasion this excessive in- 
crease of money, and consequent fluctuation of 
value. A season of unusual productiveness may 
occasion it. 

By an increase of productiveness products are 
rendered cheaper. Speculators will then buy, in 
the hope of making large profits by their sales — 
there is a call upon the banks for money, and, as 
it is for their interest so to do, they will loan to 
the utmost extent of their power. 

An unusual excitement is thus given to busi- 
ness — wild speculations are engaged in — and 
the consequence is, a great excess of money is is- 
sued, far beyond the real wants of community. 

But, as money is now cheaper at home than 



sue as before, until, at length, the eyes of men are open- 
ed — the bubble speculation bursts — property falls to its 
natural level — and there is a vast amount of useless 
money afloat in community. 

The excessive issue of money, therefore, beyond the 
real wants of community, is the evil to be avoided. 
This evil may in a great measure be remedied, by limit- 
ing the loans of the banks to a certain amount above 
their capital actually paid in. 

But the banks aiid bank directors are generally cen- 
sured for all these evils, while the speculators, the real 
originators of them, turn from themselves the odium, by 
being the first and loudest in their denunciations of the 
banking system. 

How may fluctuations in the value of paper money be occasion- 
ed by the occurrence of a season of unusual productiveness ? 



OF EXCHANGE. 277 

abroad, there will soon arise a demand for specie 
to be exported — bank bills are now bought up 
by speculators, and specie demanded for them — 
confidence in the banks begins to. fail, and they 
are obliged, for their own security, hastily to call 
in their loans. 

There now arises a scarcity of money, and a 
pressure is felt in all commercial transactions. 
But, by this scarcity of money, products again 
become comparatively cheap — there is again a 
disposition to bu}^ and to engage in speculations 
— banks again increase their loans — and the 
same extremes, unusual commercial activity and 
violent depression, again succeed each other. 

But gold and silver money cannot be thus 
suddenly and extensively increased in amount, 
for it has a natural price, different from that of 
bank bills, depending on the cost of production. 
Thus far a specie currency would be an advan- 
tage, for it would increase and diminish in a more 
exact proportion to the real wants of community. 

Banks, also, by conspiring together, may at 
one time loan very freely, and then simultane- 
ously contract their issues, and enforce the pay- 



Why are not gold and silver money liable to these sudden fluc- 
tuations ? 

What evils- may banks inflict upon community, by conspiring 
together for that purpose ? 

24 



278 OF EXCHANGE. 

merit of their loans — thus rendering money 
scarce, and unable to be obtained. 

In this manner, they may render great num- 
bers of the population bankrupt. For those who 
have payments to make, being unable to obtain 
money, will often be obliged to dispose of their 
property at a great sacrifice. 

These, however, are evils which arise mostly 
from an abuse of banking privileges. Wise legis- 
lation may in a great measure remedy them, but 
even then there are some dangers to which every 
banking system must be liable. 

The effect of banks upon individual and na- 
tional wealth, is described by Smith in a quaint 
and ingenious metaphor : — 

" The capital of a nation he likens to an ex- 
tensive tract of country, whereupon the cultivated 
districts represent the productive capital, and the 
high roads the agent of circulation ; that is to 
say, the money, that serves as the medium to dis- 
tribute the produce among the several branches 
of society. 

" He then supposes a machine to be invented 
for transporting the produce of the land through 
the air; that machine would be the exact parallel 



Do these evils, however, arise from the very nature of banks, or 
from an abuse of their privileges ? 



OF EXCHANGE. 279 

of credit-paper. Thenceforward the high roads 
might be devoted to cultivation. 

** The commerce and ijiidustry of the country, 
however, he continues, though they may be some- 
what augmented, cannot be altogether so secure, 
when they are thus, as it were, suspended upon 
the Daedalian Avings of paper money, as when 
they travel about upon the solid ground of gold 
and silver." 

In this country, public opinion appears to have 
decided that the advantages afforded by banks 
are altogether paramount to the evils which they 
inflict upon community. But it is universally 
conceded that the banking systems in the differ- 
ent States are generally very defective. 

Many theories have been advanced for the bet- 
ter regulation of the currency, but it is difficult 
to induce so many separate sovereignties as the 
States to unite in any one system. 

It is thought by many that the Safety Fund 
System adopted in New- York, combines the most 
salutary provisions for the security of banks, and 
for the evils heretofore so frequently inflicted by 



How is the effect of banks upon indmdual and national wealth 
described by Smith ? 

What is said of the present banking systems in the different 
States ? 

Of the New- York Safety Fund System ? (Explain it.) 



2&d OF EXCHANGE. 

their failures, and by the dishonesty of their di- 
rectors. 

An exposition of this system will be given in 
the accompanying note.^ 

^ By the late R.evisecl Statutes of the State of New- 
York, it is provided that each baiik in the State hereafter 
created, or whose charter shall be renewed, shall yearly 
pa}^ to the treasurer of the State a sum equal to one half 
of one per cent, on the capital stock of the bank, until 
three per cent, on the capital stock shall be paid in, which 
shall remain a perpetual fund, to be denominated a Bank 
Fund. 

This bank fund is to be appropriated to the payment of 
such debts (exclusive of the capital stock of such banks 
as shall become insolvent) as shall remain unpaid after 
the property and effects of the bank have been applied to 
that purpose. This fund is invested by the comptroller 
in public stocks, or in loans, issued upon the credit of the 
State. 

The income arising from this fund, if not needed to 
pay the debts of insolvent banks, is to be paid to the 
banks, in proportion to their contributions; but when 
the fund is reduced, by the payment of the debts of in- 
solvent corporations, the banks are again to commence 
paying into the fund as formerlj^ until the fund is reim- 
bursed. And if the fund, at any time, is not sufficient to 
pay the debts of insolvent corporations, then the first 
mone3-s paid into the fund are applied to the liquidation 
of the same. 

Bank commissioners also are appointed, Avhose duty it 
is to visit and thoroughly inspect the affairs of each bank 
at least once in four months, and to report to the legisla- 
ture. 

The amount of notes or bills put in circulation, as mo- 
ney, by any bank, is limited by law to twice its capital 
stock then paid in, and actually possessed ; and the 
amount of its loans and discounts at any one time, is lim- 
ited to twice and a half its capital stock then paid in, and 
possessed. 



OF EXCHANGE. 281 

In cases of fraudulent insolvency by the directors of 
any incorporation, the directors thus guilty are made re- 
sponsible in their private capacities for the debts of the 
institution. 

Also, every moneyed corporation hereafter to be crea- 
ted in the State, is to have all its capital paid in before it 
makes any loans or discounts, and the payment of the 
capital is to be proved on oath, to the satisfaction of the 
bank commissioners. 

The stock of a bank is usually paid by instalments; 
that is, only a certain portion of each share is paid when 
the bank commences operations, and the remainder is 
paid in such amounts and at such times as are designated 
by the act of incorporation. But, in New-York, a bank 
cannot commence business until the president and cashier 
have made and subscribed an affidavit, stating that the 
whole stock of the bank has actually been paid. 

Thus, by the provisions which regulate the banks in 
New- York, under the safety fund system, there is little 
opportunity for fraud, and the holders of bank notes can 
suffer no permanent loss by the failures of banks. It is 
thought that this system will effectually remedy the most 
prominent evils to which banks have heretofore been 
liable. 

The subject of banking is at the present time one of 
the most exciting interest. The shock that has lately 
been felt in the commercial world, and in all monetary 
transactions, — the general depression of credit, — the 
failures of thousands, — and the suspension of specie pay- 
ments by the banks, have directed public opinion to an 
inquiry into the causes of this wide-spread calamity, and 
to the suggestion of countless remedies for the evil. 

The intimate connection of this subject Avith Political 
Economy, will excuse us in adverting for a moment to 
matters of political controversy ; and in treating of such 
a subject, it is hardly possible to avoid them. 

Passing by the causes which have led to these calami- 
ties, it is not surprising, where all are interested in the 
establishment of a safe, convenient, and permanent cur- 
rency, that many projects should be advanced for the ac- 
complishment of such an object, both by the honest and by 

24* 



282 OF EXCHANGE. 

the interestedly selfish, and that a violent prejudice should 
arise against the currency system under which these ca- 
lamities happened. 

But it is surprising to find so many who are so unac- 
quainted with some of the first principles in political 
economy, — viz., the advantages deri^^ed by a division of 
labor in efi[ecting exchanges, as well as in increasing pro- 
duction, — that they wish for the destruction of all bank- 
ing institutions whatever. 

I am willing to believe that those who advocate such a 
measure, are not actuated by pecuniary motives ; for I 
can conceive of no possible good that the adoption of such 
a measure could confer upon any class of society, and it 
is not difficult to predict the evils that would fall upon all. 

Banks must be established under such regulations as 
government may impose upon them, or their business 
must be done by individuals. But individuals being fre- 
quently unknown to the public, have certainly greater op- 
portunities for the commission of fraud than public in- 
corporated bodies. 

Collusion, for the purpose of raising the rate of inter- 
est, is as liable to occur between individual mone)''- 
lenders as between banks ; and doubtless more so, as it is 
more difficult of detection. 

The wisdom of one man will probably not succeed any 
better, at least, in managing banking transactions, than 
the combined v.dsdom of a dozen individuals. All the 
evils to Avhich banks are liable, would still exist to as 
great a degree, at least, as at present, if individuals should 
undertake to do the business now done by banks. 

But it is also said that we can do without banking insti- 
tutions and banking transactions, — that we may have an 
exclusive gold and silver currency, and that every man 
may make and receive his payments in coin. 

This would merely be carrying us back two or three 
centuries in civilization — to the first stage of improve- 
ments upon a state of barter ; and the argument is of the 
same kind with that which would attempt to persuade us 
to abandon the conveniences and luxuries of the civilized, 
for the scanty necessities and simpler modes of savage 
life. 

But the arguments in favor of an exclusive metallic 



OF EXCHANGE. 283 

currency for the use of a ^reat commercial people, em- 
bracing as they do the destruction of the credit system, 
need no attempt at refutation. The subject might have 
merited discussion three centuries back, in the infancy of 
commerce, but is now too far behind the intelligence of 
the age, to meet with any favor from the more intelligent 
portion of community. 

All that is requisite to show the folly of that visionary 
and Utopian scheme, is an acquaintance with the com- 
mercial state of the civilized world, and a knowledge of 
established and immutable principles in political econo- 
my. 

That banks have been, at times, productive of some 
evils, cannot be denied ; but that they have also been, 
by the aid which they have given to commercial cred- 
it, one very efficient cause of rendering us the second 
commercial nation in the world, appears fully as evident. 

Before, then, we commence a warfare of extermina- 
tion against all banks, it may be profitable to inquire 
whether the evils complained of may not, in a great meas- 
ure, be avoided in future by better banking regulations, 
and by a salutary reformation, without the necessity of 
entire destruction. 

It would doubtless be better if our banks were estab- 
lished upon a firmer metallic basis. This may, in a 
measure, be effected by the prohibition of the issue of 
small bills, which would introduce an amount of specie 
equal to the amount of small bills withdraAvn from circu- 
lation. The small exchanges between individuals would 
then be made in specie, the great mass of the circulating 
medium would be less liable to sudden and excessive 
fluctuations, and merchants and others engaged in large 
commercial transactions, might still avail themselves of 
the advantages afforded by banks. 

But, while banks may be established by the States upon 
different systems, and under different regulations, it is 
evident that the community will entertain but little confi- 
dence in them. And, whatever system may be adopted, 
it is all-important to its success that it should gain the 
confidence of the people in its permanencij ^ — that it should 
not be liable to sudden changes and innovations ; but, 
that the system, throughout the States, should be one and 



284 OF EXCHANGE. 

uniform. And until this confidence be gained, credit 
cannot revive ; for credit implies confidence — confidence 
in the permanency and stability, as well as in the present 
utility, of the currency system which may be adopted. 

In relation to the subject of credit^ so little understood 
by most people, I cannot forbear to quote the words of 
Mr. Say:— 

'' The expressions, credit is declining, credit is revi- 
ving, are common in the mouths of the generality, w^ho 
are, for the most part, ignorant of the precise meaning 
of credit. It does not imply confidence in the govern- 
ment exclusively — for the bulk of the community have 
no concern with government, in respect to their private 
affairs. Neither is it exclusively applied to the mutual 
confidence of individuals — for a person in good repute 
and circumstances does not forfeit them all at once; and 
even in times of general distress, the forfeiture of indi- 
vidual character is by no means so universal as to justify 
the assertion, that credit is at an end. It would rather 
seem to imply, confidence in future events. 

" The temporary dread of taxation, arbitrary exaction, 
or violence, will deter numbers from exposing their per- 
sons or their property; undertakings, however promis- 
ing and well-planned, become too hazardous ; new ones 
are altogether discouraged, old ones feel a diminution of 
profit; merchants contract their operations; and con- 
sumption in general falls off", in consequence of the de- 
cline and the uncertainty of individual revenue. There 
can be no confidence in future events, either under an 
enterprising, ambitious, or unjust government, or under 
one that is wanting in strength, decision, or method. 
Credit, like crystallization, can only take place in a state 
of quiescence." 



PART FOURTH. 



OF THE 



CONSUMPTION OF WEALTH 



L Of the nature and different kinds of Con- 
sumption. 

The ultimate end and design of the creation of 
value, is the gratification of desire, But, in an- 
swering this end, the value is destroyed. Thus, 
flour is converted into bread ; its value as flour 
is destroyed, but it reappears in another form ; 
the bread is used for food, and its value as bread 
is gone for ever. This act, by which we annihi- 
late a particular value, is called consumption. 



Of what does part fourth treat ? 

For what is value created — and how is it made to answer its 
end ? 



286 CONSUMPTION OF WEALTH. 

Sometimes this consumption is followed by no 
further utility than the present gratification of 
desire, as in an exhibition of fireworks — the 
value of the article is destroyed in the gratifica- 
tion of the desire of amusement, and no further 
utility can be derived from it. But, in the con- 
sumption of bread for the gratification of a desire 
necessary to support existence, its value reappears 
in renovated health and vigor. The former is 
called unproductive, the latter, productive cou" 
sumption. 

By consumption, however, is not understood 
the destruction of material products only, but the 
destruction of value, in whatever form that value 
exists ; for it may exist either in the form of labor, 
or of capital. But all values that have been 
added by human industry, if once destroyed, can- 
not be destroyed a second time; and whatever 
cannot lose its value, is not liable to consump- 
tion. 

But all products are consumed sooner or later ; 
either by design or by accident ; rapidly or gradu- 
ally : for they are produced solely for the pur- 
pose of consumption. 



What is consumption, as here understood? 
What is unproductive, and what productive consumption .' 
By consumption do we understand the destruction of material 
products only ? 



CONSUMPTION OF WEALTH. 287 

The farmer raises wheat for the purpose of 
destroying its value in the gratification of desire. 
And the farmer may consume its value when 
changed to the form of bread, or he may obtain 
from the merchant in exchange for it another 
value in the form of cloths and sugar, which he 
wishes to consume. And the merchant obtains 
the wheat for the purpose of consuming it him- 
self, or for the purpose of selling it to another 
who wishes to consume it. Thus, all values are 
designed for consumption. 

But, we have said there are two kinds of con- 
sumption — productive and unproductive. 

In productive consumption, the value which is 
destroyed in one form, reappears with increased 
amount in another form. Thus, the farmer con- 
sumes seed, utensils, and labor, expecting that the 
produce of his farm will replace the values con- 
sumed and pay the interest of his capital, and 
also leave him a suitable recompense for his la- 
bor and skill. 

In the departments of operative industry, values 
are consumed for the purpose of changing their 
form, in order that they may be better adapted 
for consumption. Thus, the manufacturer con- 



What becomes of the value destroyed in productive consump- 
tion ? 



288 CONSUMPTION OF WEALTH. 

sumes cotton, whose value reappears in the form 
of cloth. Here the object is an increase of value. 
But, if the value of the cloth be less than all the 
values consumed in its production, it has evidently 
been an unproductive consumption of value, and 
a loss to the manufacturer. 

But values are also consumed for the gratifi- 
cation of desire where no increase of value in 
any material product is expected. Thus, values 
are consumed for the gratifications of the senses 
— for intellectual gratification — and for social 
and moral pleasures. And these kinds of con- 
sumption may be either productive or unpro- 
ductive ; for those gratifications Avhich render a 
man better, wiser, and happier, must be consid- 
ered as productive of value to him. 

But, if their tendency be to render man cor- 
rupt, debased, and wretched, the values w^hich 
have been consumed in the gratification have 
been unproductively consumed. 

But, that which is economy and productive con- 
sumption to one man, may perhaps be profusion 



For what purpose are values consumed in the departments of 
operative industry? 

When are values consumed without a design to increase their 
value ? 

When may this kind of consumption be productive — and when 
is it unproductive ? 



CONSUMPTION OF WEALTH. 289 

and unproductive consumption to another, and 
must be determined by the fortune, condition, and 
wants of the individual. 

An expense that would render a man of mod- 
erate fortune wiser and happier, might be extrav- 
agance in a poor man, and, by depriving him of 
more important gratifications, render him wretch- 
ed. 

And, so varied are the means and the circum- 
stances of individuals, that the only practical rule 
which can be given for individual consumption 
is, "Be economical, wise, and prudent, in all 
things." 

And even economy itself is a relative term — 
the knowledge of our means, and the best mode 
of employing them. It is equally distant from 
avarice and profusion. 



11. Of Pibllic Expenditure. 

It now remains for us to advert for a moment 
to public consumption, or public expenditure. 
Our remarks upon this subject will be short, for, 
after all, it will be found that there is a perfect 

Is it easy to establish rules of economy which will apply to all 
eircumstances ? 
What is economy 1 

25 



290 CONSUMPTION OF WEALTH^ 

analogy between the finances of an individual 
and those of a nation, and that the same princi- 
ples of political economy should regulate the 
management of the affairs of both. 

Government must be supported, and in no 
other way can it be maintained than by means 
derived from the people. And, as government 
possesses nothing, its revenues are derived from, 
and its expenditure provided for, by means of tax- 
ation. And its object being to provide for and 
promote the general w^elfare of the people, it 
should accomplish this object with the consump- 
tion of as little value as possible. 

The principles which regulate national con- 
sumption are, therefore, the same as those which 
apply to individuals. 

If useless and extravagant expenditure will im- 
poverish an individual, the same causes will im- 
poverish a nation — public and private expendi- 
ture affect wealth in the same manner. 

Yet, some writers have maintained, that public 
wealth increases with the increase of public con- 
sumption, and that where taxes are imposed by 
government to be consumed in games and festi- 



Is there any difference between the principles which should 
regulate public and those which should regulate private expendi- 
ture ? 



CONSUMPTION OF WEALTH. 291 

vals, the nation loses nothing — for what is taken 
from the people in the form of taxes, is returned 
again by the expenditures of government. 

The argument is of the same kind, as if a 
robber should enter a merchant's house and take 
away his money, and tell him he did him no in- 
jury, for the money would be employed in pur- 
chasing the commodities he dealt in. But in such 
a case, although the money be returned, the com- 
modities are parted with without any equivalent. 

And the same with the taxes of a nation : if 
they are consumed by government in useless ex- 
penditure, there is so much value lost. For, al- 
though the nation receive back its money, it parts 
with commodities for which it receives no return. 

The subject of public expenditure is so plain, 
after a knowledge of the nature of wealth and 
the design of consumption, that it is not thought 
requisite to give it a further discussion. The 
application of principles already established — 
and of those which will readily suggest them- 
selves — will in all cases, as far as reason can 
teach us, direct the manner and the extent of 
public consumption. 



How have some writers regarded public profusion — and how is 
the subject considered .'' 
Is the subject of public expenditure a difficult one 1 



AN APPENDIX, 



CONTAINING 



A BRIEF ACCOUNT 



OF THE 



POWERS, DUTIES, AND SALARIES 



OF 



NATIONAL, STATE, COUNTY, 



AND 



TOWN OFFICERS 



25' 



APPENDIX 



CHAPTER I. 

OF NATIONAL OFFICERS. 

The government of the United States is divi- 
ded into three great departments — the Executive, 
the Legislative, and the Judicial, each having 
distinct duties to perform, 

SECTION I. 

OF THE EXECUTIVE DEPARTMENT. 

The executive officer of government is the 
President. The general duties annexed to the 
office of President have already been considered 
in a previous portion of this work; but as they 
are obviously too numerous and too various to be 



Into what great departments is the government of the United 
States divided? 

Who is the executive othcer of government, and what is said of 
his duties? 



296 APPENDIX. 

performed by one man, subordinate departments 
have been created, and the duties of their officers 
prescribed by Congress. 

The departments created are those of State, 
Treasury, War, Navy, Post-office, and Mint. 

I. Of the Depart7ne7it of State. 

The presiding officer of this department is 
called Secretary of State. His general duties 
are to conduct all correspondence with foreign 
pov\^ers ; to keep the seal of the United States, 
and affix it to all civil commissions signed by the 
President ; to preserve, publish, and distribute the 
acts and resolutions of Congress; and to have the 
supervision of patents and copy-rights, &c. 

The Secretary is assisted in the duties of his 
office by clerks, messengers, watchmen, &c. 

11. Of the Treasury Department. 

The object of this department is to manage the 
moneyed concerns of government. The general 
duties of the Secretary of the Treasury are, to 

What subordinate exccnlive departments have been created ? 
- Who is the presiding officer of the department of state, and 
what are his general duties.-* 

What is the object of the treasury department? 

What are the duties of the Secretary of the Treasury ? 



APPENDIX. 2d7 

prepare and submit to the President or to Con- 
gress plans for the improvement and management 
of the public revenue, and for the support of pub- 
lic credit ; to superintend the collection and dis- 
bursement of the revenue ; and to report to the 
Senate or House of Representatives, when re- 
quired by either, respecting all matters pertaining 
to his office. 

The Secretary is assisted in the business of his 
office by two comptrollers, five auditors, a trea- 
surer, a register, and a commissioner of the land 
office. Each of these officers is charged with 
specific duties, and has under him a number of 
inferior officers. 

III. Of the War Departmeiit. 

At the head of this department is the Secretary 
of War, who is to perform such duties as shall 
be intrusted to him by the President, agreeably 
to the Constitution, relative to military commis- 
sions, the land forces, and warlike stores of the 
United States, or to such other matters respecting 
military afiairs as the President shall assign to 



By whom is the Secretary assisted in the business of his office .'' 
Who is at the head of the war department, and what are his 
duties.^ 



298 APPENDIX. 

such department ; or relative to granting of lands 
to persons entitled thereto for military services 
rendered to the United States; or relative to 
Indian affairs. 

The war department is divided into the follow- 
ing subdivisions, all under the general control 
and superintendence of the Secretary: — 

1. War office. 2. Requisition bureau. 3. Pen- 
sion bureau. 4. Indian bureau. 5. Bounty land 
office. 6. Office of the general staff 7. Adju- 
tant-General's office. 8. Engineer's department. 
9. Topographical bureau. 10. Ordnance de- 
partment. 11. duarter-Master's department. 
12. Purchasing department. 13. Pay depart- 
ment. 14. Subsistence department. 15. Medi- 
cal department. 

IV. Of the Navy Department. 

The Secretary of the Navy has a general su- 
perintendence of the naval establishment, and ex- 
ecutes such orders as he shall receive from the 
President relative to the procurement of naval 
stores and materials, and the construction, arma- 
ment, equipment, and employment of vessels of 



Into what divisions is the war department divided? 

What are the duties and powers of the Secretary of the Navy ? 



APPENDIX. 299 

wai\ as well as all other matters connected with 
the naval establishment of the United States. 

The Secretary is assisted by eight clerks and 
two messengers. 

There is also a Board of Navy Commissioners, 
appointed by the President, consisting of three 
officers of the navy. The board, under the su- 
perintendence of the Secretary, discharges all the 
ministerial duties of the department, and is assisted 
by six clerks, a draughtsman, messenger, and su- 
perintendent of building. In addition to the above 
officers, there are attached to the department 
twelve navy agents, seven naval storekeepers, and 
eight naval constructors. 

V. Of the Post-office Department, 

The general post-office, established at the seat 
of government, is placed under the direction of a 
P ostmaster-General. He establishes post-offices 
and appoints postmasters on routes established by 
law. He provides for the carriage of the mail, 
and pays all expenses arising from the convey- 



By whom is he assisted ? 

Who compose the Board of Navy Commissioners, and what are 
their duties ? 

Who is at the head of the post-office department, and what are 
his duties? 



300 



APPENDIX. 



ance of the mail, the collection of the revenue of 
the department, and other expenditures. He pros- 
ecutes offences against the department, and ren- 
ders a quarterly account of the receipts and ex- 
penditures to the Secretary of the Treasury. 

The expenditures of the post-ofRce department 
are paid from its receipts in postage. Its funds, 
unlike those of the other departments, do not make 
a part of the general revenue of the country, but 
its receipts and expenditures are kept within itself 
In this manner, as its funds have extended, new 
mail routes have been established, the mail greatly 
expedited on the old ones, and their frequency 
increased. 

The Postmaster-General is assisted by two as- 
sistants, an examiner, register, solicitor, three 
book-keepers, and sixty-two clerks. 

The business of the office is divided into three 
divisions. 

The first Assistant Postmaster-General has the 
superintendence of the first division, in which are 
included the book-keeper's office, solicitor's office, 
pay office, examiner's office, and register's office. 

The second division is under the direction of 



What use is made of the funds of the post office department? 
By whom is the Postmaster-General assisted ? 
How is the business of his ofFice divided.^ 



APPENDIX. 301 

the second Assistant Postmaster-General. In this 
division are the office of appointments and in- 
structions, the dead-letter office, and the office of 
mail depredations. 

The chief clerk is charged with the duties of 
the third division. In this division is the office of 
mail contracts. 

VI. Of the Mint Department, 

The officers of the mint are a Director, Chief 
Coiner, Assayer, Engraver, Melter and Refiner, 
and a Treasurer, and as many clerks and work- 
men as are necessary. The duty of the Director 
is to superintend and manage the business, and all 
the officers and persons employed in it. The 
Assayer assays or tests the quality of all metals 
which require it, and delivers them to the Chief 
Coiner. The Chief Coiner coins them in such 
quantities as the Director requires. The Engraver 
sinks and prepares the dies for the coin, w^ith the 
proper devices and inscriptions. The Melter and 
Refiner takes charge of all copper and silver or 
gold bullion delivered out by the Treasurer after 
assaying, and reduces the same into bars and 



What are the officers of the mint department, and what are their 
several duties ? 

26 



302 APPENDIX. 

ingots for the rolling mills, and then delivers 
them to the Coiner or Treasurer, as the Director 
deems expedient. The Treasurer receives and 
gives receipts for all metals which may be law- 
fully brought to the mint to be coined; and, for 
ascertaining their quality, he delivers from every 
parcel so received a number of grains to the 
Assay er, who assays such of them as require it. 



SECTION II. 

OF THE LEGISLATIVE DEPARTMENT. 

We have seen that all legislative power granted 
by the Constitution of the United States is vested 
in a Congress, which consists of a Senate and 
House of Representatives. 

The powers and duties of Senators and Repre- 
sentatives have been considered in a former part 
of this work. The organization of these bodies 
respects, 1st, their officers ; 2d, their committees ; 
and, 3d, their rules, 

1. Their officers are the presiding officer, (in 



In what is the legislative power of the general government vested? 
What does the organization of Congress respect .'' 
What are the officers of the two houses ? 



APPENDIX. 803 

the House the Speaker, and in the Senate the 
Vice-President,) the Secretary of the Senate and 
Clerk of the House of Representatives, their prin- 
cipal clerks and engrossing clerks, the Librarian, 
Sergeant-at-arms, the Door-keepers and Assistant 
Door-keepers of both houses, and the Chaplains. 
The general duties of the officers may be known 
by their titles. 

n. The chief business of legislative bodies is 
done by their committees, to whom all matters re- 
quiring investigation are first referred, and by 
whom a report is made upon the subject, which 
report is the topic of consideration with the house. 

The principal committees in either house are, 
the committees on foreign relations, on commerce, 
on the judiciary, on military affairs, &c. These 
are called standing committees, because commit- 
tees on the same subjects are appointed at every 
session. Besides these, there are select commit- 
tees appointed for specific objects, and only for the 
particular occasion. Also, the whole house, at 
times, resolves itself into a committee called the 
committee of the whole. The object of this is to 
obtain greater freedom of debate. When in com- 



How is the chief business of legislative bodies done ? 
What are the principal committees in either house 7 
What is the " committee of the whole," its object, &c. ? 



304 APPENDIX. 

mittee of the whole, a chairman is appointed in 
place of the Speaker, the regular rules of the 
house are set aside, and simply order is preserved, 
as in common deliberative assemblies. When the 
committee of the whole have finished their dis- 
cussions, the Speaker resumes the chair, and the 
members may then vote upon the subject. 

Committees in the House are appointed by the 
Speaker ; in the Senate, by ballot. In the House 
they consist of seven members each ; in the Senate, 
oifive. 

111. The rules of business, both for the Senate 
and the House, are substantially the same. 

At the beginning of a session the order of busi- 
ness is as follows : After Congress is organized, 
the President's message is received and read, with 
the accompanying documents ; then such parts as 
relate to foreign affairs, commerce, the judiciary^ 
the military, &c., are referred to their appropri- 
ate committees, who examine the subjects commit- 
ted to them, and report such bills as they think 
necessary and proper. On these bills Congress 
decide, by accepting or rejecting them. 

The order of daily business is as follows: 



How are committees appointed in each house, and of how many 
members do they consist ? 
What is the order of business at the beginning of a session ? 



APPENDIX. 305 

1st. The journal of the preceding day is read; 
2d. Petitions are presented and disposed of; 3d. 
Reports from standing and select committees are 
called for and disposed of To these subjects, 
and that of resolutioyis only, one hour a day is 
allowed. Next, the order of the day is called 
for — which consists of unfinished business in 
regular order, and subjects particularly set apart 
for that day. 

The principal motions, and the order of their 
precedence, are as follows: — 1st. The motion 
to adjourn; 2d. To lay the subject on the table; 
3d. For the previous question ; 4th. To postpone 
to a day certain ; 5th. To commit or amend ; 
and, 6th. To postpone indefinitely. 



SECTION III. 

OF THE JUDICIAL DEPARTMENT. 

The judicial power of the United States has 
been previously examined. We shall here briefly 
enumerate the diflferent Courts, and their officers. 



What is the order of daily business ? 

What are the principal motions, and what is their order of pre- 
cedence .'' 

26* 



306 APPENDIX. 

The Supreme Court of the United States con- 
sists of one Chief Justice and eight Associate 
Justices. It holds annually, at the city of Wash- 
ington, one session, to commence on the second 
Monday of January. 

The Circuit Courts are composed of a Justice 
of the Supreme Court and the District Judge of 
the district in which the Circuit Court is held. 
There are seven Circuit Districts, and in each 
two courts are annually holden. 

The United States are also divided into Judi- 
cial Districts, in each of which there is a District 
Court, consisting of one judge, called a District 
Judge. There are now upwards of thirty Dis- 
trict Courts. 

Of the Officers of the Courts. 

The officers of the United States Courts are 
Attorneys and Counsellors, Clerks, Marshals, 
and Reporters. 

The Attorneys and Counsellors are persons 
learned in the law, who are employed by the 



Of what is the Supreme Court composed ? The Ch'cuit Courts ? 
How many Circuit Districts are there ? 
Of what are the District Courts composed ? 
What are the officers of the Uuited States Courts ? 
What are Attorneys and Counsellors ? 



APPENDIX. 307 

litigant parties to conduct suits in the above 
courts. 

It is the duty of the Clerk of each court to 
enter and record, in a book kept for the purpose, 
all the orders, decrees, judgments, and proceed- 
ings of the court. 

The Marshal is the ministerial officer of the 
court, and executes all lawful precepts directed to 
him. He has power to command all necessary- 
assistance in the execution of his duty. Instead 
of a Marshal, the ministerial officer of the State 
Courts is the Sheriff of the county. 

Reporters are persons appointed by the courts 
to report and publish their judicial decisions and 
opinions. 



What are the duties of the Clerk of each Court? 
What is the Marshal ? 

Who supply the places of Marshals in the State Courts ? 
Wliat are Reporters i 



308 APPENDIX. 



CHAPTER II. 

OF STATE, COUNTY, AND TOWN 
OFFICERS. 

The Constitutions of the States are similar to 
each other, and, in form, nearly the same with 
the Constitution of the United States. We shall 
therefore consider the form and manner of gov- 
ernment, and the powers and duties of the offi- 
cers in one State only. For this purpose, we 
have selected the State of New-York. 

State governments, like the national, are divided 
into three great departments, — Legislative, Ex- 
ecutive, and Judicial. 

SECTION I. 
OF STATE OFFICERS. 

I. Of Legislative Officers, 
The legislative officers are thirty-two Senator s^ 



Do the Constitutions of the States differ materially from each 
other? 
How are the State governments divided ? 



APPENDIX. 



309 



and one hundred and twenty-eight Members of 
Assembly, a Speaker of the House of Assembly, 
a Clerk, a Sergeant-at-arms, and a Door-keeper, 
with other subordinate officers for each house. 

Senators are chosen by the people, and by dis- 
tricts ; one Senator being chosen annually in 
each Senate District. Their term of office is 
four years. 

Members of Assembly are chosen annually, by 
the people. 

The powers and duties of Senators and Mem- 
bers of Assembly vary but little from those of 
Senators and Representatives in Congress ; with 
the exception that the latter have for their objects 
national concerns, the former, municipal. In the 
mode of legislation, there is very little differ- 
ence, 

II. Of Executive Officers. 

The executive officers are a Governor and 
Lieutenant-Governor, Secretary of State, Comp- 
troller, Treasurer, Attorney-General, Surveyor- 



What are the legislative officers of the State of New- York ? 
How are the Senators chosen, and what their term of of&ce ? 
Members of Assembly ? 

How do the powers and duties of the members of the State 
Legislature differ from those of the National Legislature ? 



310 APPENDIX. 

General, State Printer, Private Secretary for the 
Governor, and a Door-keeper of the executive 
chamber. 



Of the Governor. 

The executive power of the State is vested in a 
Governor, who is chosen by the people, and holds 
his office for two years. 

To qualify a person for the office of Governor, 
he must be a native citizen of the United States, 
a freeholder, and have attained the age of thirty 
years, and have been five years a resident within 
the State. 

He is commander-in-chief of the militia and 
navy of the State; he may convene the legis- 
lature (or Senate only) on important occasions; 
he shall communicate by message to the legis- 
lature, at every session, the condition of the State, 
and recommend to them such matters as he shall 
deem expedient ; transact all necessary business 
with the officers of government ; expedite all such 
measures as shall be resolved upon by the legis- 



What are tbe executive officers of the State ? 
In whom is the executive power of the State vested ? 
What are the quahfications for Governor f His term of office I 
What are his powers and duties ? 



APPENDIX. 311 

lature, and take care that the laws are faithfully 
executed. 

The Governor has power to grant reprieves 
and pardons after conviction for all offences, ex- 
cept in cases of treason and impeachment. 

Of the Lieutenant-Governor. 

The Lieutenant-Governor is elected by the 
people, at the same time, and for the same term 
of service, as the Governor. He is President of 
the Senate ; and, in case of vacancy in the office 
of Governor, the powers and duties of the Gov- 
ernor devolve upon the Lieutenant-Governor, 
In case of the removal of the latter, the Presi- 
dent of the Senate acts as Governor. 

Of the Secretary of State. 

The Secretary of State is appointed by the 
legislature, and holds his office for three years, 
unless sooner removed by a concurrent resolution 
of the Senate and Assembly. 

It is the duty of the Secretary to keep the pub- 
How is the Lieatenant-Goveriior elected — his term of office — 
powers and duties .^ 

How is the Secretary of State appointed, and what is his term of 
office ? 
What are his powers and duties ? 



S12 APPENDIX. 

lie deeds, papers, records, &c., of the State, ex- 
cept mortgages belonging to the people of the 
State; to attend at every session of the legisla- 
ture, for the purpose of receiving bills which 
shall have become lav^s, and to distribute the 
printed laws and journals of each session to cer- 
tain persons entitled by law to receive them ; to 
record such statements of county elections as he 
shall receive from the county clerks, and notify a 
meeting of the State canvassers, for the purpose 
of examining the returns of elections ; to record 
the certificates of the board of canvassers, and de- 
liver copies of such to each person thereby de- 
clared to be elected, and a like copy to the Gov- 
ernor, and cause the same to be published in the 
public papers. 

He is, by right of office, one of the commis- 
sioners of the land office, one of the State can- 
vassers, one of the commissioners of the canal 
fund, a member of the canal board, one of the 
trustees of the State library, superintendent of 
common schools, and State sealer of weights and 
measures. 



APPENDIX. 513 



Of the Comptroller. 

The Comptroller is appointed in the same man- 
ner as the Secretary of State, and holds his of- 
fice for a like term, and is removable in the same 
manner. 

It is the duty of the Comptroller to superin- 
tend and manage the revenues of the State ; to 
exhibit to the legislature, at its annual meeting, a 
statement of the funds, revenues, and expendi- 
tures of the State ; to suggest plans for the im- 
provement and management of the public reve- 
nues ; to keep and state all accounts in which the 
State is interested, and superintend the collection 
of all moneys due to the State ; to examine the 
accounts of the debts and credits in the bank 
books kept by the Treasurer ; to draw warrants 
on the Treasurer for the payment of all monej^s 
directed by law to be paid out of the treasury. 

He has power, also, to vote in behalf of the 
State at all elections of directors of banks, corpo- 
rations, or joint-stock companies, at which the 
State is entitled to vote; and all papers relating 
to the canals are kept in his office. 

How is the Comptroller appointed 1 His term of office 1 
What are his powers and duties ? 

27 



314 APPENDIX. 

He IS, by right of office, one of the commis- 
sioners of the land office, one of the commission- 
ers of the canal fund, a member of the canal 
board, a trustee of the State library, and one of 
the State canvassers. 

Of the Treasurer. 

The Treasurer is appointed by the legislature 
of the State, and holds his office for three years. 
Within ten days after his election, he gives a bond 
to the State, in the sum of fifty thousand dollars, 
that he will faithfully execute the duties of his 
office. 

He receives all moneys paid into the treasury, 
and pays all warrants drawn by the Comptroller 
on the treasury ; and no moneys are paid out of 
the treasury except on a warrant of the Comptrol- 
ler. He makes an annual report to the legisla- 
ture of the business of his office, and his accounts 
are annnally examined by a committee appointed 
by the legislature for that purpose. 



How is the Treasurer appointed I 
What is his term of office ? 
What are his duties I 



i 



APPENDIX. 31i 



► 



Of the Altorney-General. 

The Attorney-General is appointed by the 
legislature, and holds his office for three years. 

It is his duty to prosecute and defend all suits 
in which the State is interested, and, at the re- 
quest of the Governor, Secretary of State, Comp- 
troller, Treasurer, or Surveyor-General, to pros- 
ecute such persons as are charged by either of 
those officers with the commission of an indicta- 
ble offence, in violation of the laws w^hich such 
officer is required to execute, or in relation t@ 
matters connected with his department. 

All moneys received by the Attorney-General 
for debts due or penalties forfeited to the State, 
are paid by him into the treasury. 

He cannot act as attorney in any private suit. 
He keeps a register of the business of his office^ 
and delivers the same into the hands of his suc- 
cessor. 

He is, by right of office, one of the commis- 
sioners of the land office, of the canal fund, and 
canal board, and one of the trustees of the State 
library. 

How is the Attorney-General appointed? 

What is his term office f 

What are his powers and duties ? 



316 



APPENDIX. 



Of the Survey or-Gener ah 

The Survey or -Gejicral is appointed by the 
legislature, and holds his office for three years. 

It is his duty to superintend surveys and sales 
of lands belonging to the State ; to retain in his 
office a map of the State, and to delineate thereon 
the bounds of all towns or counties erected or al- 
tered by the legislature; and whenever such 
bounds shall be so described that they cannot be 
delineated by the Surveyor-General on the map 
of the State, he shall direct the Supervisor of 
such town to cause such survey to be made, and 
to transmit the same to the Surveyor-General's 
office. 

Whenever a dispute shall arise between the 
officers of two or more towns respecting the 
bounds of the same, the Surveyor-General, if ne- 
cessary, shall direct a survey to be made, and 
shall determine such dispute. 

He accounts with the Comptroller for all mo-^ 
neys received by him in behalf of the State, or 
from the treasury. 



How is the Surveyor-General appointed ? 

What is his term of office ? 

What are his duties ? 

With whom does he account for moneys received ? 



APPENDIX. 317 

He is, by right of office, one of the commis- 
sioners of the land office, of the canal fund, the 
canal board, and is one of the State canvassers. 

Of the State Printer. 

The State Printer is appointed by the legisla- 
ture, and holds his office during their pleasure. 

It is his duty to print, during each session of 
the legislature, a specified number of copies of the 
journals of each house; a portion of which are to 
be delivered to the clerks of the Senate and As- 
sembly, for the use of their respective houses, and 
the remainder to the Secretary of State, as soon as 
may be after the close of each session. 

He also prints such number of copies of all 
documents as either house may order. 

He prints a State paper, as often, at least, as 
semi-weekly, and publishes in such paper cop- 
ies of laws, when directed by the Secretary of 
State, and also such notices as are required by 
law. 

He also prints, and delivers bound to the Sec- 
retary, as many volumes of the laws, documents, 
&c., of each session, as the Secretary may direct. 

■ I ■ - I i. - i. r ■ - - I r ' n" i' < ■» - ' -■ ■■ .i-. K ■ ■■ ■ 'in . n'i t- ii„ c wt t f j i.. . , i i » - ,i| - . t t ,. 

How is the State Printer appointed .? 
How long does he hold his office 7 
What are his duties ? 
27* 



ZiB APPENDIX. 



Of the Governor's Private Secretary, and the 
Door-keeper of the Executive Chamber. 

They are appointed by the Governor, and hold 
their respective offices during his pleasure. Their 
duties are few, and are well enough expressed by 
their titles. 



Besides the executive officers of the State 
above mentioned, there is another numerous class, 
called administrative officers. We will mention 
a few of the principal ones only. 

There are four Canal Commissioners, appoint- 
ed by the legislature, who constitute a canal 
board, and have the care and superintendence of 
the State canals. 

There are two Canal Appraisers, ai^pointed by 
the Governor and Senate, who appraise the dam- 
ages sustained by individuals whose lands and 
property have been appropriated to the use of 
canals. 



How are the Governor's Private Secretary and Door-keeper of 
the executive chamber appointed ? 
What other class of officers is there ? 
Mention the principal ones, and their duties. 



APPENDIX. 319 

Superintendents of Canal Repairs are appoint- 
ed by the canal board, who superintend the repairs 
of canals on the sections for which they are ap- 
pointed. 

Collectors of Canal Tolls are also appointed by 
the canal board. 

There is a Mayor in each city of the State, ap- 
pointed annually by the common councils of the 
respective cities, (except in the city of New- York, 
where the Mayor is now chosen by the electors 
thereof ) 

There are three Bank Commissioners appointed 
to examine the affairs of such banks as are made 
subject to their power, and to ascertain their actual 
condition, and their ability to fulfil their engage- 
ments. 

III. Of Judicial Officers. 

We shall simply enumerate the difTerent courts 
of the State, and a few of the powers and duties of 
their officers. 

1st. The President of the Senate, the Senators, 
the Chancellor, and the Justices cff the Supreme 
Court of the State, constitute a Court for the 
Trial of Impeachments and the Correction of 



Who compose the Court for the Trial of Impeachments and the 

Correction of Errors ? 



820 APPENDIX. 

Errors. The mode of impeachment and trial by 
this court is similar to that in the national legis- 
lature. This court is also the ultimate tribunal 
for the correction of errors that happen in other 
courts of the State. 

2d. There is a Court of Chancery, held by the 
Chancellor, the jurisdiction of which is very ex- 
tensive, and difficult to define. It takes cognizance 
of various cases of fraud, trust, and accident; the 
specific performance of agreements; the settle- 
ment of wills, devises, legacies, &c. ; and of many 
other cases in which courts of law afibrd no reme- 
dy. Chancery powers, in certain cases, are given 
to every Circuit Judge within the limits of his 
circuit. 

3d. There is a Supreme Court, the powers of 
which are vested in the Chief Justice and two As- 
sociate Justices, any two of whom may hold the 
court. The jurisdiction of this court is very ex- 
tensive. It has power to command magistrates 
and all civil officers to do their duty; it reviews 
and corrects the decisions of the inferior courts, 
and also has jurisdiction of civil and criminal 



What is said of the mode of impeachment.'* 
By whom is the Court of Chancery held? 
Of what cases does it take cognizance ? 
Of whom is the Supreme Court composed ? 
What are some of its powers ? 



^ 



APPENDIX. 321 

cases. The court holds four terms in every year : 
one in the city of New- York, two in Albany, and 
one in Utica. 

4th. There are eight Circuit Courts in the 
State, there being one Circuit Court in each 
senate district. In each district there is a Circuit 
Judge, who appoints the time and places of hold- 
ing circuit courts within his district. These 
courts try issues of fact joined in cases brought 
in the Supreme Court, or other issues properly 
sent to the circuit to be tried by jury. The trials 
of causes in these courts are had b}'' jury. 

5th. There are two Courts of Oyer and Ter- 
miner held in each year in every county in the 
State. In most of the counties they are held by 
a Circuit Judge or Justice of the Supreme Court, 
together with at least two judges of the county 
courts of the county. This court has power to 
inquire of, by the grand jury, and try all crimes 
and misdemeanors committed or triable in the 
county where it is held, and to deliver the jail of 
the county, according to law, of all prisoners 
therein. 

6th. Courts of Common Pleas are held in each 



How many terms does it hold annually — and where ? 
How many Circuit Courts are there in the State 1 
What cases are tried by this court — and how tried I 
Where and by whom are Courts of Common Fleas heW 



322 APPENDIX. 

county, except New- York, by the Judges of the 
county courts, at such times as are specified by 
statute. The general powers of these courts are, 
to try all cases and matters at common law of 
every kind, with some few exceptions and limita- 
tions specified by statuta 

7th. Courts of General Sessions may be holden 
by any three Judges of the county courts in every 
county of the State, except in New- York. These 
courts have power to try and determine all crimes 
and misdemeanors, except those which are pun- 
ishable with death or imprisonment in the state 
prison for life. 

8th. Courts of Special Sessions are held in the 
several counties in the State, except New- York, 
by any three Justices of the county, or by two Jus- 
tices and a Judge of the county courts. These 
courts are held at such times as offences properly 
triable by them are complained of before them. 
They have jurisdiction of certain offences enume- 
rated by law, the chief of which are petit larceny, 
(or theft,) assault and battery, charges for cruelly 
treating animals, for wilful trespasses, &c., and a 



What are the general powers of these courts? 

Where and by whom are Courts of General Sessions held ? 

What are their powers ? 

Where and by whom are Courts of Special Sessions held / 

Over what offences have they jurisdiction f 



APPENDIX. 823 

few other minor offences. The accused may de- 
mand and have a trial by jury, in all cases, when 
tried by the Court of Special Sessions ; or, if he 
choose, he may be bound over to be tried by the 
higher courts of the county. 

9th. Every Justice of the Peace may, in the 
town for which he is elected, hold a court for the 
trial of certain civil actions specified by law. But 
a Justice can in no contested suit render judgment 
for a sum exceeding fifty dollars and costs of suit; 
but, upon confession of a party, he may render 
judgment to the amount of two hundred and fifty 
dollars. 



SECTION II. 

OF COUNTY OFFICERS. 

The principal civil officers in the counties of 
this State, are the following : SheriffJ Coroner, 
District Attorney, Judges of the County Courts, 
County Clerk, Surrogate, Superintendents of the 
Poor, County Treasurer, Board of Supervisors, 



What is said of courts held by Justices of the Peace I 

What is the extent of their jurisdiction? 

Wliat ar^ the principal civil officers in each county of the State ? 



324 APPENDIX. 

Commissioners of Loans, County Sealer, Auc- 
tioneers, and Inspector of Commodities. 

Of the Sheriff. 

There is one Sheriff in each county in the 
State, who is chosen by the electors of his county 
once in every three years. Before he enters upon 
the duties of his office, he is to execute a bond to 
the people of the State for the faithful perform- 
ance of his duties. 

He is the principal conservator of the public 
peace — the ministerial officer of the courts of his 
county; he executes all writs and legal execu- 
tions directed to him from the courts of record of 
the State ; he gives notice of elections held in his 
county ; he has the custody of the jails and pris- 
ons in the county, and the prisoners in the same, 
and appoints keepers of such jails and prisons. 
He may appoint an under-sheriff, and so many 
deputies as he thinks proper. 

In case of a vacancy in the offices of Sheriff 
and under-sheriff, the first Judge of the county 
designates one of the Coroners to fill the office of 
Sheriff 



How is the Sheriff chosen — and what is his term of office ^ 
What are his powers and duties ? 



APPENDIX. 325 

Of Coroners. 

There are four Coroners for every county iti 
the State, chosen by the people, except in New- 
York, where there is only one, who hold their 
office for three years. 

The principal duty of Coroners is to investigate, 
by jury, cases of sudden death or severe injury. 
The jury, after an examination of the facts and 
circumstances of the case, deliver to the Coroner 
their inquisition in Avriting, in which they certify 
how, where, and when, the person dead or wound- 
ed became so ; who such person was, and who 
was' guilty of the act ; together with the circum- 
stances attending the transaction. 

If either murder, manslaughter, or assault and 
battery has been committed, process is issued for 
the apprehension of the person charged with the 
offence, and the inquisition found by the jury is 
returned to the next criminal court of the county. 

Of the District Attorney. 
There is a District Attorney for each county 



How many Coroners are there in each county — how chosen 
and what their term of office ? 
What are their powers and duties t 
How is the District Attorney appointed ? 

28 



326 APPENDIX. 

in the State, who is appointed by the Judges of the 
county, and holds his office for three years. HisF 
principal duties are, to conduct all prosecutions at 
the Courts of Oyer and Terminer and General 
Sessions. He files in the office of the County 
Treasurer an account of all moneys received by 
him by virtue of his office, and pays the same to 
the Treasurer. 

Of the Judges of the County Courts. 

There are a First Judge Ruifour side Judges 
of the county courts in each county in the State^ 
except New- York, who are appointed by the 
Governor, with the consent of the Senate, and 
hold their office for five years. They hold Courts 
of Common Pleas and General Sessions, and as- 
sist in holding Courts of Oyer and Terminer in 
their several counties. Their various duties are 
too numerous to be detailed here. 

Of the County Clerk. 
There is one Clerk for each county, who is 



What are his duties ? 

How many judges of the county courts are there in each county ? 

How appointed — and what their term of office? 

What courts do they hold ? 

How is the County Clerk chosen — and what is his term of office ? 



APPENDIX. 327 

chosen by the electors, and holds his office for 
three years. It is the duty of the County Clerk to 
keep and arrange all books, records, deeds, parch- 
ments, maps, &c , that are now or may be de- 
posited in his office, and to provide books for the 
recording of deeds, mortgages, or other convey- 
ances acknowledged or proved according to law; 
to inform the Governor of all persons appointed 
to offices in the county, and also of all vacancies 
in civil offices, and to report to the Comptroller 
the names of all the religious societies in the 
county. 

Of the Surrogate. 

There is one Surrogate for each county, ap- 
pointed by the Governor and Senate, who holds 
his office for four years. He gives a bond to the 
people of the State for the faithful performance of 
the duties of his office, approved by the Clerk of 
the county. 

The Surrogate has power to take the proof of 
wills of real and personal property ; to grant let- 
ters testamentary, and of administration; to direct 



What are his duties ? 

By whom is the Surrogate appointed — and what is his term of 
office 1 
What are his powers and duties ? 



328 APPENDIX. 

and control the conduct and to settle the accounts 
of executors and administrators ; to enforce the 
payment of debts and legacies, and the distribu- 
tion of the estate of intestates ; to order the sale 
and disposition of the real estate of deceased per- 
sons; to appoint guardians for minors; to remove 
them, and to direct and control their conduct, and 
settle their accounts; and to cause the admeasure- 
ment of dower to widows. 

Of the Superintendents of the Poor. 

They are appointed by the Board of Supervi- 
sors of their respective counties, (in number not 
less than three, nor more than ^yq,) and hold their 
office for one year. They have the general su- 
perintendence and care of the county poor ; but 
the regulations made by them for the relief and 
support of the poor, require the sanction of a ma- 
jority of the judges of the county courts. 

They draw on the County Treasurer for all 
necessary expenses incurred in the discharge of 
their duties, and account for the same to the Board 
of Supervisors. They make an annual report to 
the Secretary of State. 



How many Superintendents of the Poor are there in each coupty } 
How appointed — and what their term of office ? 
What are their powerj^ and duties ? 



APPENDIX. 329 



Of the County Treasurer. 

The County Treasurer is appointed by the 
Board of Supervisors, and holds his office during 
their pleasure. He gives to them such bond as 
they shall direct, for the faithful execution of the 
duties of his office. He receives all moneys 
belonging to the county, and applies the same 
according to law; keeps an account of his re- 
ceipts and expenditures ; transmits to the Comp- 
troller a statement of all moneys received by him 
for penalties, and pays the amount to the Treasu- 
rer of the State, deducting his compensation there- 
from; and exhibits to the Board of Supervisors 
his books and accounts, to be audited and allowed 
by them. 

Of the Board of Supervisors. 

One Supervisor is chosen annually in each 
town, by the electors thereof 

The Supervisors of the several towns meet 
annually in their respective counties, and at their 
annual or adjourned meetings have power to 



By whom is the County Treasurer appointed — and what his 
term of office .'' What are his duties ? 

28* 



330 APPENDIX. 

make such orders concerning the corporate prop- 
erty of the county, as they may deem expedient; 
to settle all accounts chargeable against the 
county, and direct the raising of such sums as 
maybe necessary to defray the same; to cause 
the courthouse and jail of the county to be re- 
paired at the expense of the county ; and to per- 
form all other duties which may be enjoined on 
them by any law of the State. 

The Board, except in some special cases where 
counties are excepted, also audits accounts of town 
officers and other persons. 

Of Commissioners of Loans. 

Commissioners of hoans are appointed under 
" An act authorizing the loaning of moneys be- 
longing to the State," by the Governor, with the 
consent of the Senate, and hold their office for 
two years. They give bonds, wath sufficient se- 
curity, to the people of the State, for the faithful 
performance of the duties of their office. 

They receive and keep account of all moneys 
payable upon mortgages under their charge ; 



Who compose the Board of Supervisors ? What are the pow- 
ers and duties of the Board .? 

By whom are the Commissioners of Loans appointed ? What 
are their duties ? 



APPENDIX. 331 

exhibit to the Board of Supervisors of their re- 
spective counties ail mortgages taken by them or 
their predecessors in office, for moneys loaned 
pursuant to law, together with their books, min- 
utes, &c. ; and keep their books of mortgages in 
the Clerk's office of the respective counties for 
which they wel*e appointed. 

Of the County Sealer. 

There is a County Sealer for each county in 
the State, who is appointed by the Board of Su- 
pervisors, and holds his office during their pleas- 
ure. He receives from the State Sealer, and 
keeps in his office, copies of the original stand- 
ards of weights and measures established by law. 
He also furnishes the several Town Sealers in 
the county copies of these original standards. 

All things sold or agreed for, are, in law, con- 
strued to be made in reference to these standards. 



Of Auctioneers. 
Auctioneers are appointed by the Governor 



By whom is the County Sealer appointed.' What are his du- 
ties ? 



332 APPENDIX. 

and Senate, wherever they are thought neces- 
sary, and hold their office for one year. 

All auctions are now public, and the Auction- 
eer is responsible to the public for the faithful 
discharge of his duties. 

Upon the sale of certain articles, duties are 
collected from the Auctioneer. 



Of Inspectors of Commodities. 

Inspectors of Commodities are appointed by 
the Governor and Senate, wherever they are 
thought necessary, and hold their office for two 
years. Their duty is, to inspect all articles 
which are by law subject to their inspection, and 
to decide if they are of the standard quality. 

Thus, the purchaser is insured through the In- 
spector that the article he buys is sound and 
merchantable. 



By whom are Auctioneers appointed ? 

By whom are Inspectors of Commodities appointed — and what 
are their duties i 



APPENDIX. 333 

SECTION II. 

OF TOWN OFFICERS. 

All town officers (except Justices of the Peace) 
are chosen annually. They consist of a super- 
visor, a town clerk, assessors, justices of the peace, 
a collector, overseers of the poor, commissioners 
of highways, commissioners of common schools, 
inspectors of common schools, constables, a.town 
sealer, overseers of highways, pound-masters, 
fenpe-viewers, commissioners of excise, board of 
auditors of town accounts, and commissioners of 
deeds. 

Of the Supervisor. 

It is the duty of the Supervisor of each town 
to receive and pay over all moneys raised therein 
for defraying town charges, except those raised 
for the support of highways and bridges, of com- 
mon schools, and of the poor ; to prosecute for all 
penalties of fifty dollars, or under, given by law 
to such town for its use, and for which no other 
officer is specially directed to prosecute ; to keep 



What are the Town Officers of each town ? How are they 
chosen f 



334 APPENDIX. 

an account of the receipt and expenditure of all 
moneys which shall come into his hands by virtue 
of his office ; to account with the Justices of the 
Peace and Town Clerk for the disbursement of all 
moneys received by him ; to attend all annual and 
adjourned meetings of the Board of Supervisors of 
the county ; to lay before them all accounts which 
may be presented to him against the town ; and 
to cause a survey of the town to be made when 
required by the Surveyor-General of the State. 

He is one of the inspectors of elections in the 
town, and is chairman of the board. 

Of the Town Clerk. 

It is the duty of the Town Clerk to keep the 
records, books, and papers of the town ; to record 
the minutes of the proceedings of town meetings; 
to deliver to the Supervisor copies of all entries of 
votes for raising money; and to return to the 
County Clerk the names of Constables elected in 
the town. 

Of Assessors. 
The number of Assessors in each town is not 



What are the dnties of the Supervisor ? 
"What are the duties of the Town Clerk ? 



APPENDIX. 335 

less than three, nor more than five. It is their 
duty to estimate the value of all real and per- 
sonal property owned in the town, in order to a 
just apportionment, among the citizens, of the tax 
to which the town may be subjected. 

Of Justices of the Peace. 

Justices of the Peace are chosen in each town, 
who hold courts for the trial of certain civil ac- 
tions. They preside at and preserve order at 
town meetings ; they are authorized to cause ev- 
ery person charged with the commission of a 
crime, to be brought before them for examina- 
tion; they have powder to administer any oath 
required by law to be taken or administered ; 
and they also impose fines for certain offences 
described by statute. 

Of the Collector, 

There is one Collector for each town. His 
principal duty is to collect the taxes according to 
such tax list and warrant as the Board of Super- 



What is the number of Assessors in each town — and what are 
their duties ? 
What are the duties of Justices of the Peace ? 



336 APPENDIX. 

visors shall deliver to him, and to deliver to the 
County Treasurer a list of uncollected taxes. 

Of Overseers of the Poor. 

There are two for each town. They have the 
superintendence of the poor of the town, and their 
duties are defined by statute. In some counties, 
the poor are supported by a county tax ; in others, 
each town supports its own poor. 

Of Commissioners of Highways. 

There are three for each town. It is their duty 
to have the care of the highways and bridges in 
their respective towns ; to regulate the roads, and 
alter such as they may deem inconvenient ; to di- 
vide the town into road districts ; to lay out such 
new roads, and discontinue such old roads, as 
shall appear to them, on the oath of twelve free- 
holders, to be expedient ; to deliver to the Super- 
visor a statement of the improvements necessary 
on roads and bridges, together with the probable 
estimate thereof; and to cause milestones to be 



What are the duties of the Collector ? 

Of Overseers of the Poor ^ Their number .' 

Of Commissioners of Highways .' Their number I 



APPENDIX. 837 

erected on the post-roads, and such other public 
roads as they may think proper. 

Of Commissioners of Common Schools. 

There are three for each town. They are in- 
spectors of common schools — they divide the 
town into school districts — they receive and ap- 
portion all moneys for the use of schools in the 
town — and report annually to the county clerk. 

Of Inspectors of Common Schools. 

There are three for each town. It is their du- 
ty to examine persons offering themselves as can- 
didates for common-school teachers of their town, 
and, if they are duly qualified, to give them a 
certificate to that effect. The Inspectors are also 
required to visit and examine, at least once a year, 
all the common schools of their towni. 

Of Constables. 

They cannot exceed five for each town, except 
in certain cases - provided by statute. They are 

What are the duties of Commissioners of Common Schools, and 
their nimiber ? 
Of Inspectors of Common Schools, and their number .' 
Of Constables, and their number ? 

29 



338 APPENDIX. 

conservators of the peace — the ministerial offi- 
cers of Justices' Courts, &c., and their duties, al- 
though numerous, are similar to those of the 
Sheriff of the county. 

Of the Town Sealer. 

There is one for each town. He receives from 
the County Sealer copies of the original stan- 
dards of weights and measures, and these are 
compared, once in three years, with the copies 
deposited in the office of the County Sealer. 

The Town Sealer compares all weights and 
measures brought to him for that purpose, with 
the copies of the standards in his possession ; and 
when these are made to conform to the standard, 
he seals and marks them, for which he is entitled 
to certain fees, allowed by law. 

Of Overseers of Highways. 

Their number is equal to the number of road 
districts in each town. It is their duty to repair 
and keep in order the highways within their re* 
spective districts — to warn all persons assessed 



What are the duties of the Town Sealer ? 

Of Overseers of Highways — and their number ? 



APPENDIX. 339 

to work on the highways, to come and work 
thereon — and to execute all lawful orders of the 
Commissioners of Highways. 

Of Pound-Masters. 

So many of these are chosen as the electors 
may determine, and in many towns they are 
wholly discontinued. Where they are chosen — 
beasts doing damage, or running at liberty con- 
trary to law, may be delivered to them, and, un- 
less sooner discharged, kept six days, and then 
sold to pay the damages, &c. ; and the surplus (if 
any) is paid to the owner of the beasts. But if 
no owner appear within one year, the surplus is 
paid to the Overseers of the Poor. 

Of Fence- Viewers, 

The Assessors and Commissioners of High- 
ways of each town are, by right of their office, 
fence-viewers. 

When disputes arise between two or more 
owners of adjoining lands, concerning the just 
proportion of division fences to be made and 



What are the duties of Pound-Masters — and their number? 
Of Fence-Viewers .'' 



340 APPENDIX. 

maintained by tliem, any two or more Fence- 
Viewers may be chosen by the parties to decide 
the dispute ; and their decision is final. Besides, 
any two Fence -View^ers have power to appraise 
damages done by beasts, when applied to for that 
purpose. 

Of Commissioners of Excise, 

The Supervisor and Justices of the Peace, are 
Commissioners of Excise for their town, any 
three of whom form the board. They have pow- 
er to grant licenses to keepers of inns and tav- 
erns in their towns, to sell strong and spirituous 
liquors and wines to be drank in their respective 
houses; and to license resident grocers to sell 
such liquors and wines, in quantities less than 
five gallons, but not to be drank on their premi- 
ses. They determine the sums to be paid for 
such licenses — to be not less than five nor more 
than thirty dollars ; and these licenses expire in 
one year. Persons not so licensed, are subject to 
penalties in case they sell. 
% 

Who are Commissioners of Excise ? 
What are their powers and duties .^ 



APPENDIX. 341 



Of the Board of Auditors of Toicn Accounts. 

The board is composed of the Supervisor and 
Town Clerk, together with the Justices of the 
town, or any two of the Justices. 

The board examines the accounts of the Over- 
seers of the Poor, of the Commissioners of Com- 
mon Schools, and the Commissioners of High- 
ways, &c., of their respective towns, for moneys 
received and disbursed by them in virtue of their 
offices. 

The accounts thus audited are delivered to the 
Town Clerk, to be kept by him for inspection 
by any of the inhabitants of the town. The ac- 
counts of the Supervisor are examined and audit- 
ed by the Justices and Town Clerk. 

Of Commissioners of Deeds. 

Their number, in each town, is determined by 
the Judges of the county courts, and they are ap- 
pointed by the Judges and Board of Supervisors 
of each county. 



Who compose the Board of Auditors of town accounts 1 
By whom are the accounts of the Supervisor examined and au- 
dited 1 
By whom are Commissioners of Deeds appointed.^ 

29* 



342 APPENDIX. 

They have power to take the proof and ac- 
knowledgment of conveyances of real estate, and 
the discharge of mortgages ; to take acknowledg- 
ment of bail in actions in the Supreme Court, 
and in actions in the Court of Common Pleas of 
the county for which they are appointed ; and to 
take acknowledgment of satisfaction of judgments 
in the Supreme Court, and in the Court of Com- 
mon Pleas of the county for which they are ap- 
pointed. After taking the acknowledgment of 
any conveyance, the Commissioner endorses a 
certificate thereof, signed by him on the convey- 
ance. 

What are their powers and duties ? 



THE SALARIES 

OF NATIONAL, STATE, COUNTY, AND TOWN 
OFFICERS. 



I. NATIONAL OFFICERS. 

President of the United States ...... $25,000 

Vice-President of the United States 5,000 

Department of State, 

Secretary of State 6,000 

Chief Clerk 2,000 

Commissioner of Patent Office ...... 3,000 

Treasury Department, 

Secretary of the Treasury ........ 6,000 

Chief Clerk 2,000 

First Comptroller ........... 3,500 

Chief Clerk 1,700 

Second Comptroller . 3,000 

Chief Clerk 1,700 

ThiM Comptroller 3,000 

Chief Clerk 1,700 

Fourth Comptroller 3,000 

Chief Clerk 1,700 



344 APPENDIX. 

Fifth Comptroller $'3,000 

Chief Clerk 1,700 

Solicitor of the Treasury 3,500 

Chief Clerk 1,150 

Treasurer 3,000 

Chief Clerk 1,700 

Register 3,000 

Chief Clerk 1,700 



General Land-Office. 

Commissioner 3,000 

Solicitor 2^000 

Principal Clerk of Public Lands 1^800 

Principal Clerk of Private Claims . . . . , 1,800 

Principal Clerk of Surveys 1^800 

Recorder 1^500 

Secretary i 500 



War Department. 

Secretary of War 0,000 

Chief Clerk in the Secretary's Office .... 2,000 

Clerk of the Requisition Bureau ...... 1,600 

Principal Clerk of the Bounty Land Office . . 1^400 

Commissioner of Indian Affairs 3^000 

Chief Clerk l^'ooo 

Commissioner of the Pension Office 2,500 

^ Chief Clerk I'ooo 

Chief Clerk of the Engineer Department . , . 1,150 

Chief Clerk of the Topographical Bureau . , 800 

Chief Clerk of the Ordnance Department . . . 1,150 



APPENDIX. 345 

Chief Clerk of the Quartermaster's Department $1,150 
Commissary-General of the Purchasing Depart- 
ment 3,000 

Chief Clerk 1^00 

Clerk of the Clothing Bureau . 700 

Paymaster-General of the Pay Department . . 2,500 

Chief Clerk 1,700 

Chief Clerk of the Subsistence Department . . 1,350 

Surgeon-General of the Medical Department . . 2^500 

Chief Clerk 1,150 



Navy Department. 

Secretary of the Navy 6,000 

Chief Clerk 2,000 

There Naval Commissioners, each ..... 3,500 

A Secretary 2,000 

A Chief Clerk 1,600 



General Post- Office Department. 

Postmaster-General 6,000 

Auditor 3,000 

Three Assistant Postmaster-Generals, each . . 2,500 



Mint Department. 

Director 2,000 

Treasurer 1,200 

Chief Coiner 1,500 

Assayer • • • 1?^^ 

Melter and Refiner 1^00 



346 APPENDIX. 

Assistant Assay er SI, 000 

Engraver 1,200 



Legislative Department. 

Senators, Representatives, and Delegates to the nation- 
al legislature, receive eight dollars for every day's at- 
tendance, and eight dollars for every twenty miles travel, 
by the most usual road, from their place of residence to 
the seat of Congress, both going to and returning from 
the session. And if detained on the journey by sickness, 
or if unable to attend after their arrival, they are entitled 
to the same daily allowance. 

The President of the Senate pro tempore, during the 
absence of the Vice-President, and the Speaker of the 
House of Representatives, receive, in addition to their 
compensation as members, eight dollars for every day's 
attendance on their respective houses. 

The following are the salaries of the officers of the 
two houses : — 



Secretary of the Senate . . , . . 
Clerk of the House of Representatives 

Principal Clerks 

Engrossing Clerks 

Librarian of the Library of Congress 
Sergeant-at-Arms, and the Door-keepers of the 
Senate and House of Representatives, each . 1,500 

Assistant Door-keepers 1,450 

Chaplains, each 500 



3,000 
3,000 
1,800 
1,500 
1,500 



APPENDIX. 347 



Judicial Department 

Chief-Justice $5,000 

Eight Associate Justices, each 4,500 

Attorney-General 4,000 

Reporter 1,000 

Clerk and Mai'shal fees of office. 



II. SALARIES OP STATE OFFICERS, &a, 
OF NEW-YORK. 

The pay of a Member of either house of the Legisla- 
ture, is three dollars per day. 

Governor $4,000 

Lieutenant-Governor, (pay double that of a Sena- 
tor, and six dollars per day during the session.) 

Comptroller 2,500 

First Deputy Comptroller , 1,500 

Second Deputy Comptroller 1,500 

Treasurer i . . . . 1,500 

Deputy Treasurer 1,300 

Secretary of State 1^750 

Deputy Secretary 1^500 

Surveyor-General 800 

Attorney-General 1,000 

Governor's Private Secretary ....... 600 

Canal Commissioners, each 2,000 



348 APPENDIX. 



Judicial Department. 

Chief- Justice of the Supreme Court . . . . ^ 2,500 

Two Associate Justices, each 2,500 

Reporter 500 

Eight Judges of the Circuit Courts, each . . . 1,600 

Chancellor of the Court of Chancery .... 2,500 

Register and Assistant Register fees. 

Reporter 500 

The salaries of County and To^\ti Officers, are their 
fees of office. 



Deacidified using the Bookkeeper process. 
Neutralizing agent: Magnesium Oxide 
Treatment Date: Jan. 2011 

PreservationTechnologies 

A WORLD LEADER IN COLLECTIONS PRESERVATION 
111 Thomson Park Drive 
Cranberry Township. PA 16066 
(724)779-2111 



I 



